Lucknow. In order to enable the states to provide resources for their development-welfare schemes, the central government on Monday released the advance installment of tax devolution (tax devolution) to the states from the net income of central taxes. That is, the Government of India has paid the states’ share out of the net income of central taxes. Uttar Pradesh has received the maximum amount from this head. Bihar is on the second number.
1,18,280 crore released for the third installment
The Central Government on Monday released Rs 1,18,280 crore for the third installment of tax devolution to the state governments. However, the normal monthly transfer was Rs 59,140 crore. The central government says that Rs 1,18,280 crore is a part of the monthly devolution of federal taxes to the states, however, this amount was more than the monthly devolution of Rs 59,140 crore.
Capital expenditure will pick up
It has been informed by the Government of India that “in addition to the regular installment due in June 2023, an advance installment is being released to the states so that they can accelerate capital expenditure. Finance their development-welfare expenditure. Priority out of which Uttar Pradesh got the maximum Rs 21,218 crore, followed by Bihar Rs 11,897 crore, Madhya Pradesh Rs 9,285 crore, West Bengal Rs 8,898 crore and Maharashtra Rs 7,472 crore .
What is tax devolution?
One of the main functions of the Finance Commission as laid down in Article 280(3)(a) of the Constitution is to make recommendations regarding the distribution of the net proceeds of taxes between the Union and the States. This is one of the most important functions of any Finance Commission, as the states’ share of the net proceeds of central taxes is a major vehicle of resource transfer from the Center to the states.
