New Delhi: Center to release Rs 95,082 crore to states on November 22 tax transfer amount, Finance Minister Nirmala Sitharaman announced on Monday.
Briefing the media after a virtual meeting with Chief Ministers and Finance Ministers of various states, Sitharaman said that the states have said that it will be helpful for them if tax transfer Front loaded.
“I have suggested to the Finance Secretary that on November 22, instead of the normal monthly installment of Rs 47,541 crore tax transfer amount, I have asked for the release of Rs 47,541 crore – a total of Rs 95,082 crore will be given to the states,” he said. .
Hence, this will leave more money in the hands of the states so that they can consider spending it for building infrastructure, he said.
Finance Secretary TV Somanathan said that at present, 41 per cent of the tax collected is paid in 14 installments and states have their cash flows forecast.
He said this is an advance release, and any adjustments would be made in March.
Chief Ministers of 15 states, Deputy Chief Ministers of 3 states, Lt Governor of Jammu and Kashmir Manoj Sinha and Finance Ministers of other states participated in a meeting.
Some of them requested the Finance Minister to increase the capital expenditure of the states.
Sitharaman said at a press conference, “Some Chief Ministers requested to increase the capital expenditure of the states. They said that it will be helpful for them to get a part of the tax devolution. I have directed the Finance Secretary to do so immediately.” ” meeting.
Nirmala Sitharaman also said that after the second Covid wave, India is witnessing strong economic growth. However, he reiterated that it is also time to sustain the growth and look at ways to take it into double digits.
(with inputs from agencies)
Briefing the media after a virtual meeting with Chief Ministers and Finance Ministers of various states, Sitharaman said that the states have said that it will be helpful for them if tax transfer Front loaded.
“I have suggested to the Finance Secretary that on November 22, instead of the normal monthly installment of Rs 47,541 crore tax transfer amount, I have asked for the release of Rs 47,541 crore – a total of Rs 95,082 crore will be given to the states,” he said. .
Hence, this will leave more money in the hands of the states so that they can consider spending it for building infrastructure, he said.
Finance Secretary TV Somanathan said that at present, 41 per cent of the tax collected is paid in 14 installments and states have their cash flows forecast.
He said this is an advance release, and any adjustments would be made in March.
Chief Ministers of 15 states, Deputy Chief Ministers of 3 states, Lt Governor of Jammu and Kashmir Manoj Sinha and Finance Ministers of other states participated in a meeting.
Some of them requested the Finance Minister to increase the capital expenditure of the states.
Sitharaman said at a press conference, “Some Chief Ministers requested to increase the capital expenditure of the states. They said that it will be helpful for them to get a part of the tax devolution. I have directed the Finance Secretary to do so immediately.” ” meeting.
Nirmala Sitharaman also said that after the second Covid wave, India is witnessing strong economic growth. However, he reiterated that it is also time to sustain the growth and look at ways to take it into double digits.
(with inputs from agencies)
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