Share from Centre up to November adds up to Rs6,905.17 crore
By CL Jose
THIRUVANANTHAPURAM/November 11-2022: Kerala has received Rs2,246 crore against two instalments of Union Government’s tax devolution to the state governments.
Commenting on the release of two instalments of tax devolution in one go, instead of one instalment each month, a statement from the Union Government noted, “This is in line with the commitment of Government of India to strengthen the hands of States to accelerate their capital and developmental expenditure.”
With this release of fund, Kerala has received a total of Rs6,905.17 crore as the state’s share of union taxes, against the budgeted amount of Rs11,902 crore for the whole of the financial year 2022-23.
As per the 15th Finance Commission recommendation on the tax devolution to the states, Kerala is entitled to receive only 1.925 per cent of the total tax devolutions being made by the Central Government, which in turn shares 41 per cent of the tax it receives as tax.
The Union Government in November has thus released an aggregate amount of Rs1,16,665 crore on Thursday being two instalments of tax devolution to State Governments, as against normal monthly devolution of Rs58,333 crore.
While the largest share of the tax devolution at Rs20,929 crore, was received by Uttar Pradesh, followed by Bihar at Rs11,734 crore, the recipient of the smallest share at just Rs450 crore was Goa.
The tax devolution has primarily been based on population of each state and hence Uttar Pradesh stands to receive the largest share.
Revenue deficit grant
Kerala also receives Rs1,097 crore from the Centre as revenue deficit grant along a few other states, and on this receipt, Kerala is the second largest after only West Bengal.
This, again is part of the 15th Finance Commission recommendation, whereby the state (Kerala) is entitled to get a total amount of Rs86,201 crore over a period of four years.
