Finance ministry doubles January tax devolution to state governments

Front-loading of fund transfer to help states manage Covid, undertake capex

The finance ministry on Thursday released double the amount of tax devolution for January to state governments as Finance Minister Nirmala Sitharaman authorised the release of an advance installment of Rs 47,541 crore.

States would receive Rs 95,082 crore, or double their respective entitlement, during January. The front-loading of the fund transfer is meant to help states to carry out effective Covid management besides making the capital expenditure needed to support economic growth.

The government had released the first advance instalment of tax devolution of Rs 47,541 crore to states on November 22 last year.   “With the release of the