Union Minister for Finance and Corporate Affairs Nirmala Sitharaman has authorised the release of an advance installment of tax devolution to Meghalaya and 27 other states totally amounting to Rs 47,541 crore today.
This is in addition to the regular devolution for the month of January 2022, also being released today. Thus, States would receive a total of Rs. 95,082 crore or double their respective entitlement during the month of January 2022.
For Meghalaya, the total amount released by the Finance Ministry as advance installment of tax devolution is Rs 729.28 crore. This includes the regular monthly installment for January amounting to Rs 364.64 crore and advance installment for January amounting to Rs 364.64 crore.
It is pertinent to mention that the Government of India had released the first advance installment of tax devolution amounting to Rs 47,541 crore to all the 28 states on November 22, 2021.
With the release of the second advance installment today, the states would have received an additional amount of Rs 90,082 crore under tax devolution over and above what has been budgeted to be released till January 2022.
It also needs to be noted that release from Government of India of the back-to-back loan amounting to Rs 1.59 lakh crore to state governments in lieu of GST compensation shortfall in financial year 2021-22 was completed by the end of October 2021.
This is in line with the commitment of the Government of India to strengthen the hands of states to accelerate their capital and developmental expenditure to ameliorate the deleterious effects of Covid-19 pandemic.