TS gets Rs 982 crore from Central tax pool for April

HYDERABAD: Telangana has received Rs 982 crore as part of its April instalment in its share of Central devolution of taxes and duties. The Ministry of Finance, on Monday, released Rs 46,038.70 crore to States as part of their share in Central taxes.  “The inter-se share is as per the recommendations of the Fifteenth Finance Commission,” according to Ministry of Finance.  

“To assist States effectively address the situation arising out of the #Covid19 global pandemic, as a special dispensation, the calculation of net proceeds of shareable taxes has been kept unchanged as per Budget 2020-21,” according to a tweet by Ministry of Finance.

However, neighbouring Andhra Pradesh got Rs 1,892.64 crore and Karnataka received Rs 1,678.57 crore. Tamil Nadu received Rs 1,928.56 crore. Asked the reason for TS receiving less as compared to other southern States, sources in Finance department told Express that the devolution was as per the Fifteenth Finance Commission Formula.

It may be mentioned here that the 15th Finance Commission reduced the Central share of taxes for States from 42 per cent to 41 per cent. Besides, Telangana’s share in taxes in the Central divisible pool has fallen from 2.437 per cent to 2.133 per cent. This has resulted in a decrease of Rs 2,381 crore in Central tax pool money to the State. As per the FFC recommendation, the State is estimated to get Rs 16,726 crore in 2020-21.