Centre to give states Rs 47,541 crore additional funds by November 22: Sitharaman

Finance Minister Nirmala Sitharaman on Monday said states will get Rs 95,082 crore by November 22, so they have more funds for their expenditures.

“I have suggested to the Finance Secretary that on November 22, instead of the normal monthly instalment of tax devolution amount of Rs 47,541 crore, I have asked to release another Rs 47,541 crore — a total of Rs 95,082 crore will be given to states on November 22,” Sitharaman said during a press briefing.

Sitharaman said that this is being done after keeping in consideration the desire of states to have money in their hands and to help infrastructure-creation expenditure.

“Some of the CMs requested for increasing the states’ capital expenditure. They said it would be helpful for them to get a part of the tax devolution. I have directed the finance secretary to do this immediately,” she said.

The remarks by the finance minister came after she held a virtual interaction with Chief Ministers and state Finance Ministers to discuss measures that will build on the ongoing economic recovery, help invigorate private investment, and push capital expenditure by states as well as the private sector.

Earlier, Finance Secretary T V Somanathan had said the meeting comes in the backdrop of strong economic recovery post the two Covid waves.

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