States Will Be Given An Additional Rs 47,541 Crore As Devolution Amount Instalment In November: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman addressed the media in a press conference following her interaction with chief ministers, finance ministers of states and lieutenant governors of union territories on Monday.

Important updates from the press briefing: 

1. The context of the meeting was seeking the state's perspective on how to reach double-digit growth post-pandemic. 

2. On 22nd November, instead of normal devolution payment, a total of Rs 95,082 crore would be collectively given to states for post-pandemic development

3. All states appreciated spending on infrastructure. Some states asked for 50yrs interest-free loan so that they can take up projects in infrastructure

4. Instead of devolving one instalment, we are giving two instalments in November: Finance Secretary

5. Not one state spoke about cryptocurrency today: FM Nirmala Sitharaman

6. Most states have a positive cash balance as of October 30 totalling Rs 2.66 lakh crore. Four states have negative cash balance: Finance Secretary

7. The loss due to the reduction in excise duty of petrol and diesel is worn by the central govt

8. GST on petroleum products cannot be implemented until a rate is decided upon  by the GST council: FM Nirmala Sitharaman

9. 11 States have achieved the CAPEX target set by Finance Ministry for Q1. They have been permitted additional borrowing. 

10. States are moving firmly on capital expenditure. There has been a suggestion to strengthen the Dispute Resolution Mechanism.

11. CAPEX of 20 states have been 23 Per Cent and 79 Per Cent higher as compared to 2019 and 2020 respectively B/W Apr-Sept this year: Finance Secretary

12. Rs 47541 crore would be given as devolution payment plus an extra Rs 47541 crore, therefore, the total amount would be Rs 95082 Crore