Shillong, Oct 13: Meghalaya came third among the North East states in terms of the tax devolution fund released by the Central government.
It may be mentioned that on October 10 the Central government released tax devolution to all states in the country. It includes one advance installment, in addition to the regular installment due in October.
This release of the tax share is in view of the upcoming festive season and to enable states to accelerate capital spending, and also finance their development/ welfare related expenditure.
Among the states in the North East region, Assam got the highest amount at Rs 5,573 crore.
Arunachal Pradesh came second with Rs 3,131 crore. It was followed by Meghalaya (Rs1,367 crore), Manipur (Rs 1,276 crore), Tripura (Rs 1,261 crore), Nagaland (Rs 1,014 crore), and Mizoram (Rs 891 crore).
Tax devolution is a distribution of tax revenues between the central government and the state governments. It is a constitutional mechanism established to allocate the proceeds of certain taxes among the Centre and the states in a fair and equitable manner.
The Finance Commission has the responsibility to make recommendations regarding the division of the net proceeds of taxes between the Union government and the states.
The share of states in the central taxes for the 2021-26 period is 41 per cent.
