The Union Government has taken a significant step towards bolstering state finances by authorizing the release of an additional instalment of tax devolution amounting to ₹72,961.21 crore. This move, announced by the finance ministry on Friday, aims to provide substantial support to state governments ahead of the forthcoming festivities and the New Year.
The additional tax devolution, apart from the previously scheduled instalment due to states on January 10, 2024, and the instalment of ₹72,961.21 crore released on December 11, 2023, is intended to empower state administrations in financing various essential social welfare measures and crucial infrastructure development schemes.
Finance Minister Nirmala Sitharaman highlighted the importance of these funds, emphasizing that they would significantly strengthen the capabilities of state governments in executing vital initiatives aimed at societal welfare and progress.
Moreover, in a proactive response to the pressing needs of Tamil Nadu following recent floods, the central government has already disbursed ₹900 crore in flood relief to the state. As per the finance ministry’s data, Tamil Nadu is slated to receive a share of ₹2,967.10 crore from the additional tax devolution authorised by the Centre, aiding the state in its ongoing efforts towards recovery and rehabilitation post the calamity.
This financial assistance aligns with the central government’s commitment to supporting states during challenging times, ensuring the availability of resources to address immediate needs and propel long-term development projects across various regions.
The infusion of funds serves as a testament to the collaborative approach between the Centre and states, emphasizing the shared responsibility in fostering inclusive growth and facilitating an environment conducive to progress and prosperity for all.
The finance ministry’s statement underscores the significance of these financial allocations, highlighting their role in not only addressing immediate requirements but also in laying a robust foundation for sustained growth and advancement across the nation.
As the nation prepares to embrace the festive season and welcome the New Year, these substantial financial injections are poised to fortify state governments, enabling them to embark on initiatives that uplift communities, enhance infrastructure, and drive comprehensive development.
The proactive stance of the Union Government in swiftly disbursing aid and additional resources signifies a commitment towards bolstering state capacities, underscoring the collaborative spirit essential for the nation’s growth trajectory.
This strategic allocation of funds is poised to have a far-reaching impact, ensuring that states are empowered to navigate challenges and chart a course towards a more resilient and prosperous future.
Sources By Agencies
