Centre Disburses ₹1,78,173 Crore to States as Tax Devolution for Festive Season

In a bid to encourage states to increase their spending on development and capital outlay, the Centre on Thursday said it has transferred tax devolution of Rs 1,78,173 crore to state governments, as against the normal monthly devolution of Rs 89,086.50 crore.
It contains one advance instalment besides the regular instalment that has to be paid in October.

It is also seen that out of the states Uttar Pradesh accounted for Rs 31,962 crore, Bihar for Rs 17,921 crore, Madhya Pradesh for Rs 13,987 crore, Maharashtra for Rs 11,255 crore, West Bengal for Rs 13,404 crore, Rajasthan for Rs 10,737 crore, Odisha for Rs 8,068 crore, Andhra Pradesh for Rs 7,211 crore and Telangana for Rs 3,745 crore.

This release is in view of the upcoming festive season and to enable states to accelerate capital spending, and also to finance their development/welfare related expenditure," a statement by the Union Ministry of Finance said.

The central government will be transferring Rs 23,48,980 crore to states and union territories in FY 2024-25 that marks a rise of 11.9 percent from the actuals of 2023-24.

Devolution to states from the Centre's tax revenue is estimated at Rs 12,47,211 crore in 2024-25, an increase of 10.4 per cent from that of the actuals for FY 2023-24.
Devolution to states as per actuals for FY 2023-24 is estimated at Rs 1,08,046 crore more than the budget estimate of Rs 10,21,448 crore, or an increase of 10.6 per cent.

The BJP-led NDA government had, in June this year released additional instalment of devolution of taxes that together accrued to a sum of Rs 1,39,750 crore. The Centre released tax devolution to the tune of Rs 1.42 lakh crore in February which supplemented the Rs 72,961 crore that was disbursed in the same month earlier.

Central government is likely to spend Rs 48,20,512 crore in the fiscal year of 2024-25 and it is up by 8.5% from actuals of 2023-24.