Congress general secretary Jairam Ramesh on Monday slammed the Centre after it authorised the release of tax devolution to states for June, calling the move a “third-rate PR”. According to the Congress leader, the tax devolutions are “constitutional entitlements” determined by the finance commission.
“The Finance Ministry has just announced what is being billed as a major tax devolution to states. Undoubtedly this has been done at the behest of the one-third PM…Tax devolutions to states are no special favours being done by men of non-biological origin. This is third-rate PR trying to pass off what is legitimately due to states as some prasad being distributed,” Jairam Ramesh wrote in a post on X, formerly known as Twitter.
On Monday, the Centre authorised the release of tax devolution of ₹1,39,750 crore to states for June. According to the finance ministry, one additional instalment is being released in addition to the regular release of the devolution amount for June.
Also read: GST needs reforms, state govts must have their say
{{/usCountry}}On Monday, the Centre authorised the release of tax devolution of ₹1,39,750 crore to states for June. According to the finance ministry, one additional instalment is being released in addition to the regular release of the devolution amount for June.
Also read: GST needs reforms, state govts must have their say
{{/usCountry}}“This cumulatively amounts to ₹1,39,750 crore in the current month. This will enable state governments to accelerate development and capital spending,” the ministry said in a statement.
Currently, 41 per cent of taxes collected by the Centre is devolved in 14 instalments among states during a fiscal year. With this release, the total amount devolved (for FY 2024-25) to states till June 10, 2024, is ₹2,79,500 crore.
Notably, the interim budget 2024-25 includes a provision of ₹12,19,783 crore for devolution of taxes to states.
This comes as senior BJP leader Nirmala Sitharaman retained the crucial finance ministry as President Droupadi Murmu, on the advice of PM Modi, allocated portfolios to his council of ministers on Monday.
Modi was sworn in as the prime minister for the third consecutive term after the NDA secured a majority in the recently held Lok Sabha election. Modi became the only second PM to serve three successive terms, the first being Jawaharlal Nehru, the first PM of India.
(With inputs from PTI)