In the fiscal year 2024-25, Uttar Pradesh is set to receive the highest allocation of Union tax and duties, amounting to a substantial Rs 2,18,86.84 crore, as per the Union Budget Estimates. Following Uttar Pradesh, Bihar secures the second-highest share with Rs 1,22,685.76 crore, followed by Madhya Pradesh with Rs 95,752.96 crore, West Bengal with Rs 91,764.26 crore, and Maharashtra with Rs 77,053.69 crore.
In contrast, Tamil Nadu, where the ruling party DMK has voiced concerns about perceived unequal treatment from the Central government in tax revenue sharing, is slated to receive Rs 49,754.95 crore. This places Tamil Nadu after Rajasthan, which is expected to receive Rs 73,504.11 crore, and Odisha, set to get Rs 55,231.76 crore.
The taxes and duties subject to sharing between the Central government and the states include Corporation Tax, Income Tax, Wealth Tax, Central Goods and Services Tax, Customs, Union Excise Duty, Service Tax, and Other Taxes and Duties. The total estimated amount to be shared by the Central government with the state governments in 2024-25 stands at Rs 12,19,782.85 crore, constituting 41 per cent of the Centre's tax revenue. This allocation reflects the distribution of financial resources among states, highlighting Uttar Pradesh's prominent position in the fiscal framework.
(With Agency Inputs)