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The Finance Ministry stated that this installment is along with the tax devolution installment as a result of states on January 10, 2024 and the installment of Rs 72,961.21 crore which was already launched on December 11, 2023.
“In view of the forthcoming festivities and the New Yr, the Union Authorities has authorised the discharge of a further installment of tax devolution amounting to ₹72,961.21 crore to strengthen the palms of State Governments for financing varied social welfare measures and infrastructure growth schemes,” an announcement from the federal government learn.
The Union Cupboard, chaired by Prime Minister Narendra Modi, just lately authorised the Phrases of Reference (ToR) of the sixteenth Finance Fee, which is able to make suggestions for the five-year interval starting April 1, 2026.
The federal government is anticipated to quickly identify the chairperson and members of the sixteenth Finance Fee.
The fee would submit its report for the five-year interval (2026-27 to 2030-31) to the President by October 31, 2025.Moreover suggesting tax devolution between the Centre and states and income augmentation measures, the fee would evaluate the current preparations for financing catastrophe administration initiatives on the subject of the funds constituted underneath the Catastrophe Administration Act, 2005.Finance Fee is a constitutional physique that offers recommendations on Centre-state monetary relations.
The erstwhile fifteenth Finance Fee underneath N Ok Singh had advisable that states be given 41 per cent of the divisible tax pool of the Centre in the course of the five-year interval 2021-22 to 2025-26, which is on the identical degree as was advisable by the 14th Finance Fee.
