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FinMin sanctions Rs 92,077 cr to states as devolution of central taxes

Business Finance

Press Trust of India  |  New Delhi 

The government on Thursday said it has released Rs 92,077 crore towards devolution of central taxes to states for April and May.

In a tweet, the Office of Finance Minister Nirmala Sitharaman said, "GoI has released a total amount of Rs 92,077 crore, as state's share in the devolution of central taxes and duties for the months of April and May 2020."

The devolution amount for April stood at Rs 46,038.10 crore, while for May, it is Rs 46,038.70 crore.

The tweet further said that these releases are according to projections of receipts in Budget Estimate 2020-21 and have not been adjusted for the actual tax collections, impacting the Centre's cash balances.

"This is a special gesture to ensure that the states' cash flows remain undisturbed at this crucial time," it added.

The Budget had projected the share of the states in taxes at Rs 7.84 lakh crore for 2020-21.

The 15th Finance Commission had recommended the share of states at 41 per cent of the divisible pool and 1 per cent for the newly-created Union Territories of Jammu and Kashmir, and Ladakh.

The 14th Finance Commission had recommended that the states be given 42 per cent share in taxes.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 21 2020. 18:10 IST