Center Releases Rs 1 Lakh Crore As Tax Devolution To States Amid Festive Season
This additional installment is over and above the normal monthly devolution due on Oct. 10, the Finance Ministry said.
The government on Wednesday released Rs 1.02 lakh crore as advance tax devolution to states amid the festive season, according to press release by Ministry of Finance. This move is to accelerate capital spending and finance development and welfare related expenditure, it said.
This additional installment is over and above the normal monthly devolution due on Oct. 10, finance ministry added in its release.
State-Wise Break-Up
According to the state-wise break-up, Uttar Pradesh, the most populous state in India, has received highest allocation of Rs 18,227 crore, followed by Bihar with Rs 10,219 crore. While Madhya Pradesh received tax devolution of Rs 7,976 crore, West Bengal received Rs 7,644 crore.
Maharashtra, which is among the top contributor to the country's GDP, received Rs 6,418 crore, whereas Andhra Pradesh received Rs 4,112 crore.
Among other southern state, Kerala received an allocation of Rs 1,956 crore, while Tamil Nadu received Rs 4,144 crore and Telangana received Rs 2,136 crore. Karnataka got an allocation of Rs 3,705 crore.
In a recent meeting, GST Council approved a two-tier rate structure of 5% and 18%, replacing the earlier four major slabs — 5%, 12%, 18%, and 28%. The overhaul received council's nod after a consensus was reached between the Centre and all state governments.
Although this will lead to dip in revenue collection, the impact will be equally shared by the Centre and the states, Union Finance Minister Nirmala Sitharaman recently said.
