Finance Min Nirmala Sitharaman chairs meet with 15 CMs; to release Rs 95,082 Cr to states

Finance Minister Nirmala Sitharaman held a virtual interaction with Chief Ministers of States and Lieutenant Governors of Union Territories (UTs) on Monday. Chief Ministers of 15 States, Deputy Chief Ministers of three States, Jammu and Kashmir L-G Manoj Sinha, and finance ministers of other States marked their presence at the meeting on November 15. The meeting revolved around the robust growth witnessed after the second COVID wave and the ways in which it could be sustained. 

The dignitaries of the states present at the meeting proffered their ideas as to how sectors of investment, development and manufacturing could be taken to new heights while maintaining resilience. Some Chief Ministers even requested for frontloading a part of the tax devolution for the current financial year, in order to increase the states' capital expenditure. The need for offshore wind energy generation policy was highlighted by some states.

Key points of the meeting

While speaking to the press after the meeting, Finance Minister Nirmala Sitharaman spoke on the suggestions put forth by different states. Sitharaman mentioned that the session was very useful as it helped understand how the states will function post the Coronavirus pandemic. The Finance Minister stated, "The way in which we have frontloaded many of the dues of the states have been recognised. Some of the CMs requested for increasing the states' capital expenditure. They said it would be helpful for them to get a part of the tax devolution. I have directed the finance secretary to do this immediately."

Devolution amount doubled; Finance Ministry to release Rs 95,082 crore to states

Union Finance Minister Nirmala Sitharaman asserted that the states will not be short of money as of 2021. Talking about the devolution amount that had been set to Rs 47,549 crore, Union Minister Sitharaman said that she had urged the finance secretary to double the amount and forward the same, that is the amount of Rs 95,082 crore, to the states by November 22. The Finance Minister said, "Other than the amount due in November of devolution, one more installment will be given together. This will help the states in spending the amount further on infrastructure."

Image: Twitter/@FinMinIndia