Press Release
The Union Finance Minister, Smt. Nirmala Sitharaman, authorised the release of an advance instalment of tax devolution amounting to ₹47,541 crore to State Governments in January 2022, in addition to the regular monthly devolution for the same month. As a result, States received a total of ₹95,082 crore during January 2022, effectively double their normal entitlement for the month. This release followed a similar advance instalment of ₹47,541 crore provided in November 2021, and together the two advance releases ensured that States received an additional ₹90,082 crore over and above the budgeted tax devolution up to January 2022. The measure was undertaken to enhance the fiscal capacity of States and enable them to accelerate capital spending and developmental activities, particularly in the context of recovery from the adverse economic impact of the COVID-19 pandemic. The press release also noted that the Centre had already completed the release of ₹1.59 lakh crore as back-to-back loans to States by October 2021 to compensate for GST revenue shortfalls in FY 2021–22. A detailed State-wise distribution of the tax devolution was appended, underscoring the Government’s continued commitment to cooperative federalism and timely financial support to States.
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