‘Third-class PR’: Congress slams Centre’s tax devolution to states amounting to over Rs 1.39 lakh crore |  India news
2 mins read

‘Third-class PR’: Congress slams Centre’s tax devolution to states amounting to over Rs 1.39 lakh crore | India news

The Center on Monday cleared tax devolution of Rs 1,39,750 crore for the current month. Sharing the details, the Ministry of Finance further said that apart from the regular publication of the decentralization amount due for June, another installment will be released.

Senior Congress leader Jairam Ramesh (Photo: TV9 Network)

New Delhi: The Congress has strongly criticized the Centre’s move to allow tax devolution of Rs 1,39,750 crore for June to states, calling it “third-class PR”. It said that the government is trying to present what is in accordance with the laws of states as ‘prasad’.

On X (formerly Twitter), senior party leader Jairam Ramesh wrote: “The Ministry of Finance has just announced what is billed as a major tax devolution to the states. There is no doubt that this was done on the orders of one third of the Prime Minister. Decentralizing taxes to states is not a special favor performed by people of non-biological origin. This is third-rate PR trying to portray what is rightfully due to the states as distribution of prasad.”

The Center allowed tax devolution to be released on Monday

Earlier on Monday, the Center had cleared tax devolution of Rs 1,39,750 crore for the current month. Sharing the details, the Ministry of Finance further said that apart from the regular publication of the decentralization amount due for June, another installment will be released. The statement said, “This totals ₹ 1,39,750 crore for the current month. This will enable state governments to accelerate development and capital spending.

Tax devolution worth over Rs 2,50,000 crore shared till June

Currently, almost 41 percent tax collected by the Center is shared with the states in 14 installments. With the release of the latest amount, the total transfer to states (for FY 2024-25) till June 10, 2024 has reached Rs 2,79,500 crore. In the interim budget presented on February 1 for the financial year 2024-25, a provision of ₹ 12,19,783 crore was announced for devolution of taxes to states. The devolution of tax to states was taken up by senior BJP leader Nirmala Sitharaman, who retained the finance ministry post on Monday, a day after the oath-taking ceremony by President Draupadi Murmu.

On Sunday, Prime Minister Narendra Modi and 71 Union ministers took oath before the President in a grand ceremony attended by nearly 8,000 delegates, including from abroad.