Below-par Central tax share disappoints Kerala

The first monthly share from the Central taxes and duties has come as a disappointment for Kerala in the new financial year.

Published: 23rd April 2020 06:36 AM  |   Last Updated: 23rd April 2020 06:36 AM   |  A+A-

By Express News Service

THIRUVANANTHAPURAM: The first monthly share from the Central taxes and duties has come as a disappointment for Kerala in the new financial year. The Centre sanctioned Rs 894.53 crore as against the state’s expectation of Rs 1,269.72 crore. As per the Union Budget, ‘net proceeds of shareable Central taxes’ for the state was Rs 1,5236.64 crore, which means Rs 1,269.72 crore month.

“Usually, the monthly payment in a financial year is calculated on the basis of the budget amount except for the last month. The variations in collection would be adjusted in the last month’s amount,” said a senior finance department official.

“If the Centre continues with the monthly sanction of Rs 894.53 crore, the aggregate amount for the year would be Rs 1,0734.36 crore. And if the Union government decides to pass on the collection drop due to the Covid-19 situation to the states, i.e., if it makes the usual adjustment in the last month, the actual share for the state would be around half of the budget figure,” he added.

Various states had asked the Centre to sanction the monthly amount as per the Budget figure and to do away with the adjustment in March collection so that they get sufficient money to battle the pandemic better. The Centre has not responded positively to this demand. 

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