Sitharaman authorises release of Rs 47,541 crore as advance instalment of tax devolution to States
New Delhi, January 20, 2022
Union Minister for Finance Nirmala Sitharaman today authorised the release of an advance instalment of tax devolution to State Governments amounting to Rs 47,541 crore.
This is in addition to the regular devolution for this month, also being released today, an official press release said.
The States would receive a total of Rs 95,082 crore or double their respective entitlement during January.
The Union Government had released the first advance instalment of tax devolution of Rs 47,541 crore to the States on November 22, 2021. With the release of the second advance instalment, the States would have received an additional amount of Rs 90,082 crore under tax devolution over and above what has been budgeted to be released till January 2022.
The release from the Union Government of the back-to-back loan amounting to Rs 1.59 lakh crore to State Governments instead of GST Compensation shortfall in FY 2021-22 was completed by the end of October 2021.
"This is in line with the commitment of the Government to strengthen the hands of States to accelerate their capital and developmental expenditure to ameliorate the deleterious effects of the COVID-19 pandemic," the release added.