Meghalaya comes third among the North East states in the amount of tax devolution released by the Central government for the month of March 2023.
The Centre has on March 10 released the 14th installment of tax devolution to states amounting to Rs 1,40,318 crore, as against normal monthly devolution of Rs 70,159 crore.
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.
While Meghalaya received Rs 1088 crore, Assam got Rs 4417 crore and Arunachal Pradesh Rs 2491 crore.
Manipur received Rs 1009 crore, Tripura Rs 1003 crore, Nagaland Rs 802 crore, Mizoram Rs 705 crore and Sikkim Rs 545 crore.
Tax devolution is decided by the 15th Finance Commission constituted under Article 280 (3) of the Constitution. The commission makes recommendations regarding the distribution of net proceeds of taxes between the Centre and the states.
The recommendations made by the Finance Commission will apply to the five years from 2021-2022 through 2025-2026.
The 15th Finance Commission has decided that states will receive 41 per cent from the divisible tax pool for 2021-22 to 2025-26. This means that states will receive 41 per cent of the Gross Tax Revenue.
The devolution of taxes to states is usually done via monthly installments.
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