Centre releases Rs 72,961 cr as tax devolution to states ahead of festivities, New Year

The Centre on Friday (December 22) authorised release of tax devolution of Rs 72,961.21 crore ahead of forthcoming festivities and the New Year. The Union Finance ministry, in a statement, said that the Centre is releasing the funds to strengthen the hands of state governments for financing various social welfare measures and infrastructure development schemes.

This installment is in addition to the tax devolution installment due to the states on January 10, 2024, and the installment of Rs 72,961.21 crore already released on December 11, 2023.

“In view of the forthcoming festivities and the New Year, the Union Government has authorised the release of an additional installment of tax devolution amounting to Rs 72,961.21 crore to strengthen the hands of State Governments for financing various social welfare measures and infrastructure development schemes,” it added.

Uttar Pradesh got the largest share of Rs 13,088.51 crore, followed by Bihar with Rs 7338.44 crore, Madhya Pradesh with Rs  5727.44 crore, and West Bengal with Rs 5488.88 crore.

Currently, 41 per cent of taxes collected by the Centre is devolved in 14 instalments among states during a fiscal year.

The Centre releases these tax installments to states in 14 parts. As per the 2023-24 Budget, the Centre expects to transfer Rs 10.21 lakh crore to states this year.