Centre Disburses Rs.72,961.21 Crore to States for Additional Tax Devolution
Centre Disburses Rs.72,961.21 Crore to States for Additional Tax Devolution

The Central government releases a whopping sum of Rs.72,961.21 crore to various states across India. This fund is part of the tax devolution proceeds meant to support social welfare programs and infrastructure projects. According to the finance ministry's statement on Friday, this release is an additional amount provided to states, apart from the sums due to them on 10 January 2024 and 11 December 2023.

Normally, the Centre distributes tax devolution funds to states in 14 installments each year, which include monthly payments and three extra disbursements in March.

Uttar Pradesh stands as the biggest recipient in this recent allocation, receiving Rs.13,088.51 crore. Following Uttar Pradesh are Bihar with Rs.7,338 crore, Madhya Pradesh with Rs.5,727.44 crore, West Bengal with Rs.5,488.88 crore, Maharashtra with Rs.4,608.96 crore, Rajasthan with Rs.4,396.64 crore, and Odisha with Rs.3,303.69 crore. Meanwhile, smaller amounts were allocated to states like Goa (Rs.281.63 crore), Sikkim (Rs.283.10 crore), Mizoram (Rs.364.80 crore), and Nagaland (Rs.415.15 crore).

Tax devolution is a crucial means through which state governments receive funding from the Centre. It constitutes about 41% of the Centre's tax collections annually, aiming to aid states in their development initiatives, welfare programs, and essential sector projects.

In the past, the central government has made advance payments of devolution to states. Earlier this year, an additional installment was released in June. This advance was aimed at assisting states in accelerating capital spending, funding their development and welfare-related expenses, and providing resources for crucial priority projects or schemes.

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