Centre releases Rs 4,314 crore as tax devolution to Karnataka

The Centre on Monday released Rs 4,314 crore to Karnataka as part of tax devolution.

This is the third installment of tax devolution to states for the current financial year, said a statement from the Ministry of Finance.

The Ministry of Finance has released a total Rs 1.18 lakh crore in this instalment of tax devolution to states in June.

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One advance instalment, in addition to the regular instalment due in June 2023, is being released to states to enable them to speed up capital spending, finance their development/welfare-related expenditure and also to make available resources for priority projects/ schemes.

"The Union Government has released the 3rd instalment of tax devolution to State Governments amounting to Rs 1,18,280 crore on 12th June 2023, as against normal monthly devolution of Rs 59,140 crore," the ministry said in a statement.

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

According to the 2023-24 budget, the Centre expects to transfer Rs 10.21 lakh crore to states this year.

So, each of the 14 instalments should be Rs 72,961 crore. However, the size of the instalments increases as the year progresses once the Centre's revenues improve.