Centre clears states tax share of Rs 46,038.70 crore for May

TAX

The finance ministry on Monday said that it has cleared states share of Rs 46,038.70 crore for May instalment of devolution of states’ share in central taxes and duties.

TAX“These releases, similar to April releases, have been calculated based on tax receipts projected in Budget 2020-21 & not as per actuals,” the ministry said in a tweet.

Besides, it stated that the centre’s prime objective is protecting states’ revenues and meeting their liquidity requirements in their struggle against the COVID-19 pandemic.

The Budget announced by the centre has projected the share of the states in taxes at Rs 7.84 lakh crore for 2020-21. Earlier, the 15th Finance Commission had recommended the share of states at 41 percent and 1 percent for the newly-formed union territories of Jammu and Kashmir, and Ladakh.

The 14th Finance Commission had suggested that the states to be given 42 percent share in taxes.
“Finance Ministry has issued sanction orders for Rs 46,038.70 cr today for the May instalment of Devolution of States’ Share in Central Taxes & Duties,” the ministry said in another tweet.

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