The Finance Ministry on Thursday said it had released Rs. 45,000 crore to the States as additional devolution in FY21 following revenue buoyancy in the March quarter.
As per the Revised Estimates for FY21, Rs. 5,49,959 crore, being 41% of the shareable pool of taxes and duties, were estimated to be released. However, the Finance Ministry has devolved Rs. 5,94,996 crore, based on initial estimates of the shareable pool that would be collected in FY21, the Ministry said in a statement. The 15th Finance Commission has recommended that States be given 41% of the divisible tax pool of the Centre during FY21.
The Ministry said the additional amount of Rs. 45,000 crore was released in two instalments of Rs. 14,500 crore and Rs. 30,500 crore.
The Rs. 14,500 crore was released along with the 14th regular instalment of devolution on March 26; the second instalment was released on March 31. “The Ministry... has released the amounts to share the revenue buoyancy seen in Q4 FY21 and in the true spirit of fiscal federalism,” it added.