Meghalaya received Rs 1367 crore tax devolution today from the Centre.
It may be mentioned that the Central government today released tax devolution of Rs 1,78,173 crore to all states in the country as against the normal monthly devolution of Rs 89,086.50 crore.
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.
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.
