Bhubaneswar: The Government of India has released 3rd instalment of tax devolution to Odisha Government amounting to Rs 5356 Crore on Monday.
The Centre has released a total of Rs 1,18,280 crore to 28 States including Odisha as against normal monthly devolution of Rs 59,140 crore.
One advance instalment in addition to the regular instalment due in June 2023 is being released to States to enable them to speed up capital spending, finance their development/ welfare related expenditure and also to make available resources for priority projects/ schemes, the Ministry of Finance said.
This is the third instalment of tax devolution to States for the current financial year 2023-24.
The Centre releases tax devolution to states in 14 equal instalments every year. As such, this involves two months where the instalment is double the usual monthly amount. However, these double-instalment months normally come at the end of the financial year after the Centre has greater clarity on its finances.
As per the 2023-24 Budget, the Centre expects to transfer Rs 10.21 lakh crore to States this year. So, each of the 14 instalments should be Rs 72,961 crore. However, the size of the instalments increases as the year progresses once the Centre’s revenues improve, sources said.
In the current financial year 2023-24, the Centre has, so far, transferred Rs 2.37 lakh crore to States.
In 2021-22, the Centre transferred Rs 8.98 lakh crore to States, exceeding the revised estimate of Rs 7.45 lakh. The Centre transferred Rs 9.48 lakh crore as against the budget estimate of Rs 8.17 lakh crore during 2022-23.