On Monday, the Ministry of Finance has taken a major step to help the statrs fightr from the current situation. The ministry has transferred a total of Rs 46,038 to all the states as part of their share in central taxes and duties.
In a tweet, the finance ministry said that the inter-se share is totally as per the reccomendationsa we have received from XV Comission.
Uttar Pradesh has received the highest amount, followed by Bihar, Madhya Pradesh and Maharashtra respectively.
Because of the current situation, the revenue of the centres has been impacted badly, which in turn has affected the state revenue.
Rathin Roy who is the director of National Institue of Public Finance this is highly welcomed as it would safeguard the states from fall in the revenue. He also added on to it that this must not be seen as extra money, as it would be used when there is a need to use and ajust with the pool revenue.
To fight with the mismatch of the liquidity, RBI on Monday had also come up with the increase number of ways and means for the centre.
Moreover, adding to his tweets he also said that if the revenue still remains weak for the month of April, it would become difficult to make assured payments.