3rd instalment of tax devolution: Centre releases over Rs 8K cr

Kolkata: The Central government has released Rs 8,898 crore for Bengal as part of its third instalment of tax devolution to the state.

The Finance Ministry in a tweet communicated the release of Rs 1,18,280 crore as 3rd instalment of tax devolution to state governments as against the normal monthly devolution of Rs 59,140 crore.

The Centre released one advance instalment in addition to the regular instalment due in June 2023 and is being released to states to enable them to speed up capital spending, finance their development and welfare-related expenditure and also to make available resources for priority projects or schemes, a notification from the ministry read.

Uttar Pradesh received the highest share of Rs 21,218 crore and Goa the least at Rs 457 crore. Gujarat received Rs 4,114 crore while Assam got Rs 3,700 crore.

“The Centre has released fund that was part of the devolution and not for the dues that are pending for long. Right now, Bengal has pending dues of Rs 1.15 lakh crore from the Centre,” a senior Nabanna official said.

Currently, 41 per cent of taxes collected by the Centre is devolved in 14 instalments to states during a fiscal year.

The funds are allocated to the states based on various factors such as population, area and fiscal capacity.