Revenue receipts – Bhartiyanews24x7

NEW DELHI: Buoyed by healthy cash flows due to good revenue receipts so far this year, the centre on Monday decided to release an extra instalment of taxes that are transferred to the states. “This is a goodwill gesture as the tax collections have been good,” said an official, explaining the rationale while ruling out any cash crunch for some of the states.“It was decided that apart from the regular release of the devolution amount for the month of June 2024, one additional instalment will be released. This cumulatively amounts to Rs 1,39,750 crore in the current month. This will enable state governments to accelerate development and capital spending,” the finance ministry said in a statement.With this release, so far in the current financial year, the total amount devolved to states was e...

Small States must prioritise raising their own revenue to reduce their dependency on the Union government The fiscal situation of India’s States has garnered significant attention in recent times. Despite ample data on State finances, most of the analysis is centred around larger States. There needs to be more discussion on the fiscal position of small States (i.e. States with a population of less than 1 crore). Most of these small States have distinctive characteristics that limit revenue mobilisation. Recognising these disabilities, the Constitution has provided mechanisms to address them. But these States continue to rely heavily on the Union government for revenue. This dependence creates vulnerabilities for the States as well as the Union.The total revenue receipts for a State constit...

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Centre to transfer extra instalment of taxes to states in June | India News – Times of India

Data | The risk of small States’ heavy reliance on the Union government