The government will issue more decentralized funds to the states to help them meet their investment capital
To spur states to focus on infrastructure spending and help them meet their capital expenditure (investment) goals for the current fiscal year, the government will issue additional decentralized funds as a result of them, total value of Rs 95,082 as of November 22.
Speaking to the press after a marathon meeting with the ministers of 15 states and the finance ministers of other states, finance minister Nirmala Sitharaman said that the decision to release the fund was made after receiving requests from the states. about “preloading” tax division funds, like it was a special year.
She told reporters that some states are of the opinion that this will help them spend more on infrastructure development because there will be no shortage of capital.
“So I have directed the finance minister to issue another round of tax exemptions on November 22 for the states. There will be two pieces worth Rs 47,541 crore, each of which will be released to all states on that date. Therefore, the total amount will be Rs 95,082 crore,” said the finance minister.
“It was an exceptional year as the pandemic hit the economy in the first quarter of the current financial year, a rare meeting held under rare circumstances,” said Sitharaman.
The Treasury Secretary added that there is consensus among the states that spending on infrastructure is important and they need the money, so they decided to issue more tax breaks.
According to the recommendation of the Finance Commission No. 15, 41 percent of the total divisible tax would be apportioned to the states.
Finance Minister TV Somanathan said the money was given to the states in 14 installments, 11 in 11 months and three in March, the last month of the fiscal year.
“This month, we will be giving the states two batches instead of one,” he said.
The Finance Minister said that states such as Andhra Pradesh, Chhattisgarh and Uttarakhand are among a few that have met the capital investment targets set by the Center for the current fiscal.
When asked if the issue of cryptocurrencies was discussed in the meeting, Ms. Sitharaman said that no state was talking about it.
Earlier, during the meeting of the National Assembly standing committee on finance with representatives of the cryptocurrency industry, it was argued that it is necessary to regulate virtual currencies.
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