Centre releases Rs 45,000 crore as additional devolution to states

The Finance Ministry on Thursday said it has released Rs 45,000 crore as additional devolution to states in FY 2020-21, marking an increase of 8.2 per cent over revised estimates of 2020-21.

As per RE 2020-21, Rs 549,959 lakh crore being 41 per cent of the shareable pool of taxes and duties were estimated to be released to states.

However, the Ministry of Finance devolved an amount of Rs 594,996 crore based on initial estimates of shareable pool that will be collected in 2020-21.

The Centre released these amounts to share revenue buoyancy seen in Q4 2020-21 and in the true spirit of fiscal federalism. The additional amount of Rs 45,000 crore was released in two installments of Rs 14,500 crore and Rs 30,500 crore.

A total of Rs 14,500 crore was released along with the 14th regular installment of devolution on March 26 while the second installment of Rs 30,500 crore was released to states on March 31

( With inputs from ANI )