Finance Ministry releases ₹45,000Cr as devolution to States in FY 2020-21

The Ministry of Finance has released these amounts to share the revenue buoyancy seen in Q4 2020-21 and in the true spirit of fiscal federalism.

The Ministry of Finance, Government of India, released ₹45,000 crores as additional devolution to States in FY 2020-21. This is an increase of 8.2% over RE 2020-21. As per RE 2020-21, ₹5,49,959 crore, being 41% of the shareable pool of taxes and duties were estimated to be released to the States. However, the Ministry of Finance has devolved an amount of ₹5,94,996 crore, based on the initial estimates of the shareable pool that would be collected in 2020-21.

The Ministry of Finance has released these amounts to share the revenue buoyancy seen in Q4 2020-21 and in the true spirit of fiscal federalism. The additional amount of ₹45,000 crores was released in two instalments of ₹14,500 crores and ₹30,500 crores. ₹14,500 crores were released along with the 14th regular instalment of devolution on 26th March 2021, whereas the second instalment of ₹30,500 crores was released to the States on 31st March 2021.

(With Inputs from PIB)