Government will launch extra devolution funds to states to assist them fulfill their capexIn order to spur states to focus on facilities spending and help them satisfy their capital investment (capex) targets for the existing financial year, the federal government will launch additional devolution funds due to them, totalling Rs 95,082 crores on November 22.

Briefing the media after a marathon conference with chief ministers of 15 states and finance ministers of other states, finance minister Nirmala Sitharaman stated that the decision to launch the funds was taken after receiving demands from states for front loading of tax devolution funds, as it was a remarkable year.She informed reporters that several states were of the view that this would help them in spending more on infrastructure development as there will be no lack of funds.

Therefore I have directed the financing secretary to launch an extra instalment of tax devolution on November 22 to the states.

There will be 2 installations of Rs 47,541 crore each which will be released to all states on that day.

Therefore the overall amount will be Rs 95,082 crore, the finance minister said.As this has actually been a remarkable year when the pandemic hit the economy in the very first quarter of the current fiscal year, this was an uncommon meeting held under unusual circumstances, Ms Sitharaman said.The finance minister added that there was an agreement amongst states that facilities spending was essential and for that they require funds, for that reason it was chosen to launch extra instalments of tax devolution.As per the suggestions of the 15th Finance Commission, 41 percent of the divisible tax pool is to be degenerated to states.Finance Secretary T V Somanathan said that the funds are offered to states in 14 instalments, 11 in eleven months and three in March, the last month of the .

This month we will provide the states two instalments instead of one, he said.The finance minister said that states like Andhra Pradesh, Chhattisgarh and Uttarakhand are amongst a few of the states which have already satisfied their capex targets set for them by the Centre for the existing fiscal.When asked whether the problem of cryptocurrency was also talked about during the meeting, Ms Sitharaman said that none of the states discussed it.Earlier in the day, throughout the conference of the Parliamentary standing committee on finance with agents of cryptocurrency market, it was felt that there is a requirement to regulate the virtual currency.