FinMin gives Rs 46,000 cr in April devolution as states fight coronavirus

Topics Coronavirus | funds

These amounts are still short of what the states have been asking as their resources are crunched due to the extended nationwide lockdown.
The Finance Ministry said on Monday that it will release Rs 46,038.7 crore to states as devolution for April, marking the amount from the divisible pool of central taxes and duties.

“The inter-se share is as per the recommendations of the 15th Finance Commission. To assist States effectively address situation arising out of COVID19 global pandemic, as a special dispensation, the calculation of net proceeds of shareable taxes has been kept unchanged as per Budget 2020-21,” the Ministry said on its official twitter account.

Earlier this month, the ministry had released Rs 17,287.08 crore to states in revenue deficit grants and state disaster response mitigation funds for 2020-21, again as per recommendations of the 15th FC.

These amounts are still short of what the states have been asking as their resources are crunched due to the extended nationwide lockdown.

Chief Ministers and state finance ministers have written to the centre seeking funds to deal with the pandemic as well as pending amounts, whether under devolution, grants, share of central schemes or GST compensation

Maharashtra had sought a special package worth Rs 25,000 crore, asking the central government to release by March 31 pending dues worth Rs 16,654 crore under various heads. Tamil Nadu has sought a special assistance of Rs 4,000 crore and other financial support. West Bengal has also asked for a package of Rs 25,00 crore and clearance of dues worth Rs 36,000 crore. All states have sought relaxation of their borrowing and fiscal limits.



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