In a proactive move aimed at accelerating development and capital spending at the state level, the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government has released an additional installment of devolution of taxes, totaling a significant sum of Rs 1,39,750 crore this month.
👉 Centre releases ₹1,39,750 crore installment of Tax Devolution to States
👉 With today’s release, total ₹2,79,500 crore devolved to States for FY2024-25 till 10th June 2024
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— Ministry of Finance (@FinMinIndia) June 10, 2024
This latest release supplements the provision made in the Interim Budget 2024-25, which earmarked a substantial amount of Rs 12,19,783 crore towards tax devolution to states.
With this recent allocation, the cumulative devolution of taxes to states for the fiscal year 2024-25 has reached a noteworthy sum of Rs 2,79,500 crore as of 10 June.
Uttar Pradesh emerges as the primary beneficiary of this distribution, securing the highest amount at Rs 25,069.88 crore, followed closely by Bihar at Rs 14,056.12 crore.
Madhya Pradesh and West Bengal secured the third and fourth positions, respectively, with allocations of Rs 10,970.44 crore and Rs 10,513.46 crore.
Highlighting the significance of this financial support, the Ministry emphasized that the Centre had previously released Rs 1.42 lakh crore in tax devolution to the states in February, supplementing the Rs 72,961 crore disbursed earlier in the same month.
“With this release, states have received a total of three installments of tax devolution in February 2024,” stated the ministry spokesperson.
Furthermore, recognizing the importance of fostering development in the Northeast region, the Ministry has allocated specific portions of tax devolutions to key states.
Assam leads the pack with an allocation of Rs 4,371.38 crore, followed by Meghalaya at Rs 1,071.90 crore, and Manipur at Rs 1,000.60 crore.
Sikkim, Mizoram, Nagaland, and Tripura have also received significant allocations of Rs 551 crore, Rs 698.78 crore, Rs 795.20 crore, and Rs 989.44 crore, respectively.
