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The Centre released two instalments of tax devolution to state governments amounting to Rs 1,16,665 crore on Thursday, as against normal monthly devolution of Rs 58,333 crore.
According to the finance ministry, this is in line with the commitment of the government of India to strengthen the hands of states to accelerate their capital and developmental expenditure. Funds provided to the states under the interest free loans can be used for new and ongoing capital projects as well as for settling pending bills. To encourage early capital spending, the Centre has also front-loaded tax devolution to states. (ANI)
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