New Delhi: In view of the ongoing festive season, the Centre on Thursday released tax devolution of Rs 1.78 lakh crore to state governments, including one advance instalment of over Rs 89,000 crore in addition to regular instalment due in October, 2024. The government said that it would enable states to accelerate capital spending and finance their development and welfare related expenditures.
As per the statement issued by the finance ministry, among all the states, Uttar Pradesh is the highest receiver among all with Rs 31,962 crore, followed by Bihar (Rs 17,921 crore), Madhya Pradesh (Rs 13,987 crore), Maharashtra (Rs 11,255 crore), West Bengal (Rs 13,404 crore), Rajasthan (Rs 10,737 crore), Odisha (Rs 8,068 crore), Andhra Pradesh (Rs 7,211 crore) and Telangana (Rs 3,745 crore).
Devolution to states from the Centre’s tax revenue is estimated to be Rs 12.47 lakh 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 Rs 1.08 lakh crore more than the budget estimate of Rs 10.21 lakh crore (an increase of 10.6 per cent).The Central government is estimated to spend Rs 48.20 lakh crore in 2024-25 -- an increase of 8.5 per cent over the actuals of 2023-24. In June this year, the BJP-led NDA government released an additional instalment of devolution of taxes, cumulatively amounting to Rs 1,39,750 crore. The government in February had also released Rs 1.42 lakh crore in tax devolution to the states, supplementing the Rs 72,961 crore disbursed earlier in the same month.
