The Ministry of Finance said on Thursday that it has released the Ministry 45,000 crore to the states as an additional deviation in 2020-21, following the revenue boom in the March quarter.
According to the revised estimate for 2020-21, 95 5,49,959 crore, estimated to be 41 percent of the shared pool of taxes and duties, was released to the states.
The ministry said in a statement that the finance ministry has, however, developed an amount of Rs 5,94,996 crore.
The 15th Finance Commission recommended that states should be given 41 per cent of the center’s divisible tax pool during the 2020-21 fiscal year.
The ministry said that an additional amount of ₹ 45,000 crore was ₹ 14,500 crore. 30,500 crores were released in two installments. 14 14,500 crores was released on March 26, 2021 with the 14th regular installment of diversion, while the second installment of ment 30,500 crores was released to the states on March 31, 2021.
“The Finance Ministry has released these amounts to share the revenue boom seen in Q4 2020-21 and the true spirit of fiscal federalism.”
Separately, the Department of Expenditure under the Ministry of Finance has released ₹ 11,830 crore to the states under the ‘Special Assistance to States’ for ance capital expenditure.
The scheme was announced by the Finance Minister on October 12, 2020 as part of the Atmanibhar Bharat package. The scheme aims to increase capital expenditure by the state governments, which were facing a difficult financial environment due to reduction in tax revenue arising out of COVID-19 epidemic in the year 2020-21.
Under the scheme, expenditure expenditure proposals of 11,912 crores of 27 states were approved by the Department of Expenditure. The ministry said that capital expenditure projects have been approved in various sectors of the economy such as health, rural development, water supply, irrigation, electricity, transport, education, urban development.
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