ZIRAAT TIMES TEAM REPORT
Srinagar: The finance ministry on Monday said it has sanctioned Rs 46,038.70 crore for May instalment of devolution of states’ share in central taxes and duties.
Jammu and Kashmir and Ladakh together are to receive a cumulative one per cent from the divisible pool, sources in Finance Department told Ziraat Times. However, it was not immediately clear what the break-up of the 1 per cent was between Jammu & Kashmir and Ladakh.
“These releases, similar to April releases, have been calculated based on tax receipts projected in Budget 2020-21 & not as per actuals,” the ministry said in a tweet. It added that the Government of India’s prime objective has been protecting states’ revenues and meeting their liquidity requirements in their fight against the COVID-19 pandemic.
Like other states, J&K’s tax collection has witnessed a sharp drop due to the covid19 lockdown.
The Budget had projected the share of the states in taxes at Rs 7.84 lakh crore for 2020-21. The 15th Finance Commission had recommended the share of states at 41 per cent of the divisible pool and 1 per cent for the newly-created union territories of Jammu and Kashmir, and Ladakh.
The 14th Finance Commission had recommended the states be given 42 per cent share in taxes.
“Finance Ministry has issued sanction orders for Rs 46,038.70 cr today for the May instalment of Devolution of States’ Share in Central Taxes & Duties,” the ministry said in another tweet.
As per the state-wise break up of devolution, Rs 1,892.64 crore was issued to Andhra Pradesh, Rs 1,441.48 crore to Assam, Rs 1,564.4 crore to Gujarat, Rs 3,461.65 crore to West Bengal, Rs 8,255.19 crore to Uttar Pradesh, Rs 894.53 crore to Kerala and Rs 4,631.96 crore to Bihar.