Representative image Indian rupees.
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The central government on Friday released an additional amount of Rs 72,961.21 crore to states as tax devolution for financing various social welfare measures and infrastructure development.
The highest amount of Rs 13,088.51 crore has been released to Uttar Pradesh followed by Rs 7,338.44 crore to Bihar and Rs 5,488.88 crore to West Bengal. The amount released to Karnataka stands at Rs 2660.88 crore.
“In view of the forthcoming festivities and the New Year, the Union Government has authorised the release of an additional instalment 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,” Union Finance Ministry said. This instalment is in addition to the tax devolution instalment due to states on January 10, 2024, and the instalment of Rs 72,961.21 crore already released on December 11, 2023, the ministry said.
As per the recommendations of the 15th Finance Commission, which is applicable till 2025-26, states are to be given 41% of the revenue collected in the divisible pool. States’ share at 41% of the divisible pool is estimated at Rs 42.2 lakh crore for the financial year 2020-21 to 2025-26 period.