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NEW DELHI — In a bid to enable states to boost development and capital spending, the Centre on Thursday said it has released tax devolution of INR 1,78,173 crore to state governments, as against the normal monthly devolution of INR 89,086.50 crore.
It includes one advance instalment, in addition to the regular instalment due in October.
Among the states, Uttar Pradesh (INR 31,962 crore), Bihar (INR 17,921 crore), Madhya Pradesh (INR 13,987 crore), Maharashtra (INR 11,255 crore), West Bengal (INR 13,404 crore), Rajasthan (INR 10,737 crore), Odisha (INR 8,068 crore), Andhra Pradesh (INR 7,211 crore) and Telangana (INR 3,745 crore) were the top receivers.
“This release is in view of the upcoming festive season and to enable states to accelerate capital spending, and also finance their development/welfare related expenditure,” according to a statement by the Union Ministry of Finance.
The central government will transfer INR 23,48,980 crore to states and union territories in FY 2024-25, an increase of 11.9 per cent over the actuals of 2023-24.
Devolution to states from the Centre's tax revenue is estimated to be INR 12,47,211 crore in 2024-25, an increase of 10.4 per cent over the actuals of 2023-24.
In FY 2023-24, according to the actuals, devolution to states is estimated to be INR 1,08,046 crore more than the budget estimate of INR 10,21,448 crore (an increase of 10.6 per cent).
In June this year, the BJP-led NDA government released an additional instalment of devolution of taxes, cumulatively amounting to INR 1,39,750 crore. The Centre in February had released INR 1.42 lakh crore in tax devolution to the states, supplementing the INR 72,961 crore disbursed earlier in the same month.
The Central government is estimated to spend INR 48,20,512 crore in 2024-25 -- an increase of 8.5 per cent over the actuals of 2023-24.