Govt to release higher devolution instalment to States-Sitharaman

Union Finance minister Nirmala Sitharamn has said that the Centre  government will release additional devolution funds due to States to focus on infrastructure spending and help them meet their capital expenditure (capex) targets for the current financial year, The government will release additional devolution funds due to them, totalling Rs 95,082 crores on November 22. Briefing the media in New Delhi on Monday,after a marathon meeting with chief ministers of 15 states and finance ministers of other states, finance minister Sitharaman said that the decision to release the funds was taken after receiving requests from states for “front loading” of tax devolution funds, as it was an exceptional year. Several states were of the view that this would help them in spending more on infrastructure development as there will be no shortage of funds, she said. 

As per the recommendations of the 15th Finance Commission, 41 percent of the divisible tax pool is to be devolved to states. The finance minister said that states like Andhra Pradesh, Chhattisgarh and Uttarakhand are among some of the states which have already met their capex targets set for them by the Centre for the current fiscal. Replying to a question, Ms Sitharaman said that Petrol and Diesel can't be included in Goods and Services Tax (GST) till the GST Council sets the rate for their inclusion. She further said that people should ask the state governments they had voted for if some of them have not cut fuel rates,