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New Delhi : The Ministry of Finance, Government of India (GoI), released Rs 45,000 crore as additional devolution to States in FY 2020-21. This is an increase of 8.2% over RE 2020-21. As per RE 2020-21, Rs 5,49,959  crore, being 41% of the shareable pool of taxes and duties, were estimated to be released to the States. However, Ministry of Finance has devolved an amount of Rs 5,94,996 crore based on the initial estimates of shareable pool that would be collected in 2020-21.

The Ministry of Finance has released these amounts to share the revenue buoyancy seen in Q4 2020-21 and in the true spirit of fiscal federalism.  The additional amount of Rs 45,000 crore was released in two instalments of Rs 14,500 crore and Rs 30,500 crore. Rs 14,500 crore was released along with the 14th regular instalment of devolution on March 26, 2021, whereas the second instalment of ₹30,500 crore was released to the States on March 31, 2021, according to a PIB release.