NE BUSINESS BUREAU
NEW DELHI, NOV 7
In view of the upcoming festive season, the Union Government has authorised the release of tax devolution of ₹ 72,961.21 crore to State Governments for the month of November 2023, on Tuesday, 7th November instead of the usual date 10th November.
- Early release enables State Governments to make in-time releases during festival season
- Uttar Pradesh gets lion’s share of ₹13,089 cr, Tamil Nadu ₹297,6.10 cr, and Gujarat ₹2,537.59 cr
- Incidentally, Tamil Nadu Finance Minister Thangam Thennarasu had accused the union government of betraying TN on many counts, including the devolution of tax revenue
Uttar Pradesh has received the lion’s share of ₹13,089 cr, Tamil Nadu ₹297,6.10 cr, and Gujarat ₹2,537.59 cr respectively.
This will enable the State Governments to make in-time releases and add to the festivities and celebrations among the people.
Incidentally, Tamil Nadu Finance Minister Thangam Thennarasu had accused the union government of betraying TN on many counts, including the devolution of tax revenue. Replying to the discussion on the first supplementary estimates for the current financial year in the Assembly on October12, the minister said the state continues to be one of the largest contributors to the country’s direct tax revenues, The New Indian Express reported.
“But in devolution of share of tax revenue, TN is not getting its due share. “When we pay Rs 1 to GOI, the union government devolves only 29 paise. But Uttar Pradesh, where BJP is in power, gets Rs 2.73 in return for a contribution of Rs 1. Between 2014-15 to 2021-2022, TN contributed Rs 5.16 lakh crore to the country’s direct tax revenues, but in return, the state received only Rs 2.08 lakh crore,” he said.
Contrary to this, UP contributed only Rs 2.24 lakh crore but the union government devolved Rs 9.04 lakh crore to that state -i.e., UP got a nearly four-fold hike in the devolution of tax shares.
