PANAJI
Goa got a welcome allocation of Rs 450 crore as the Union Finance Ministry released two installments of additional tax devolution to States, nationally aggregating Rs 1.16-odd lakh crore as against normal monthly devolution of Rs 58,333 crore.
The funds are meant to accelerate capital and developmental expenditure by States, the finance ministry said.
India's most populous State of Uttar Pradesh garnered a maximum Rs 20,929 crore and Bihar got Rs 11,734 crore.
Chief Minister Pramod Sawant welcomed the allocation of Rs 450 crore, saying it will boost his government's efforts in enhancing developmental works in multiple sectors.
This is the second time in FY23 that the Centre has transferred two installments of tax devolution to State governments in the same month, with the previous occasion being in August.
The Centre releases 14 installments of tax devolution to States every year. As such, this involves two months where the installment is double of the usual monthly amount.
Devolution refers to a portion of net proceeds from the central taxes and duties awarded to states.
The 15th Finance Commission mandated that 41% of the central government’s tax mop-up be shared with states between FY22 to FY26. The formula for devolution and the quantum of taxes for each state is also decided by the Commission.
The States had received doubled tax devolution installments worth Rs 1.16 lakh crore in August as well. Similarly, in November last year as well, the central government had doubled the devolution to states to afford more liquidity to the states, so that they could better plan their infrastructure projects.
