Finance Ministry sanctions Rs 46,038 crore as states share in taxes for April

The finance ministry sanctioned the release of Rs 46,038.10 crore to states as their share of central taxes and duties for April on Monday.

The first instalment of tax devolution was made as per the recommendations of the 15th Finance Commission (FC), the ministry announced via Twitter.

The NK Singh-led FC had assigned 41% of central taxes to the states and union territories and 1% to the union territories of Jammu & Kashmir and Ladakh.


According to the state-wise break up, Uttar Pradesh received the highest amount at Rs 8,255.19 crore, followed by Bihar which got Rs 4,631.96 crore and Madhya Pradesh’s Rs 3,630.6 crore.

This comes after the Centre released Rs 17,287 crore to various states on April 3, on account of its share of the state disaster response mitigation fund (SDRMF) and revenue deficit grants to enhance financial resources of states in their Covid-19 operations.

Many states have been urging the Centre to release more funds in the form of special packages over and above clearing their pending dues to help the states finance their battle against the Covid-19 outbreak.

Finance Commission
In light of the likely fiscal disruption due to the pandemic and lockdown, the FC is set to meet with its Economic Advisory Council on April 23-24 to rethink some of its decisions and recommendations.

The online discussion will revolve around the implications of the pandemic on gross domestic product (GDP) numbers for the current and coming fiscal and uncertainty over other macroeconomic variables.

The commission will also discuss the assumptions for tax revenue and buoyancy for the two fiscal years and to what extent public expenditure can be boosted to support the economy.

On April 7, the commission recommenced deliberations via video conference to review its revenue modelling and expenditure outlay given the emerging situation.