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Nirmala Sitharaman says advance instalment of tax devolution to states will remove hindrances in infra development
Income tax returns filed in east UP region have gone up nearly six fold, says Union finance minister in Lucknow
Union finance minister Nirmala Sitharaman on Friday said the Central government had released two instalments of tax devolution to states, including an advance instalment, to ensure that no hindrances were caused in the way of infrastructure development.
Nirmala Sitharaman also said the number of income tax returns filed in the east UP region (spread over 44 districts of Uttar Part and a part of the Kumaon area of Uttarakhand) went up nearly six fold in about five years, from 3.80 lakh in 2016 to 21.83 lakh on March 31, 2021. She quoted data for the east UP region of the income tax department in this connection.
The Union finance minister said this was an indication of increasing economic activity and the money thus collected was provided for development work being carried out in the state
She was addressing a gathering after inaugurating, along with chief minister Yogi Adityanath, the income tax department’s new building Pratyaksha Kar Bhawan (Direct Tax Building) in Lucknow.
About tax devolution to the states, Nirmala Sitharaman said, “Whatever the states used to get on the 20th of every month through devolution, the Union government has released double the amount (two instalments). The amount for instalment to be paid in March (2022) has been paid in advance to the states so that no hindrance is caused to the expenditure on infrastructure.”
“We have front-rolled whatever was to be paid in March 2022,” Nirmala Sitharaman said, referring to the Union government’s move to release two instalments of tax devolution of ₹95,082 crore to the states a few days ago.
Commenting on her observations about the release of funds for infrastructure development, Professor Yashvir Tyagi, former head of the department of economics at Lucknow University, said, “The Centre’s advance payment of UP’s share in taxes will complement the state government’s efforts to give a push to developmental activities, especially infrastructure projects, ahead of the 2022 assembly elections in the state.”
Nirmala Sitharaman said the land for the new building of the income tax department was bought in 2002 but the construction work started in 2017.
Without naming them, Nirmala Sitharaman referred to the delay to target the previous regimes in the state and said the new building has been constructed in just three years
For 15 years before that, no steps were taken to get the building constructed and rent was being paid for running the department’s office elsewhere, she said.
Yogi Adityanath, who also addressed the audience, used the occasion to point out how investment of more than ₹3 lakh crore had flown in after the state organised the Uttar Pradesh Investors’ Summit in February 2018. He also referred to an improvement in the law and order situation in the state and the Centre sanctioning the Uttar Pradesh Defence Industrial Corridor.
Listing the development projects being implemented in the state, he said next month, Prime Minister Narendra Modi would lay the foundation stone of the Ganga Expressway project for which over 86% land has been acquired.
Nirmala Sitharaman lauded the Yogi Adityanath government’s efforts to build health infrastructure, put up additional Covid-19 beds and laboratories, provide oxygen and set up new medical colleges. She said facilities had been provided to the people even during the second wave of Covid-19.
“There was no shortage even during the second wave in Uttar Pradesh. This was available to the people,” she said.
