Centre oks Rs 1.42 lakh crore tax devolution to states

February 29, 2024

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New Delhi: The Centre on Thursday accredited the discharge of two installments of tax devolution amounting to ₹1.42 lakh crore to twenty-eight states to bolster their capacity to fund varied social welfare and infrastructure growth schemes.

This launch is along with one other instalment of Rs 71,061 crore already made on February 12, the finance ministry stated in a press release.

Uttar Pradesh leads the pack of the beneficiary states. It would obtain Rs 25,495 crore from the newest instalments, adopted by Bihar (Rs 14,295 crore), Madhya Pradesh (Rs 11,157 crore), West Bengal (Rs 10,692 crore), Maharashtra (Rs 8,978 crore), Rajasthan (Rs 8,564 crore), Odisha (Rs 6,435 crore) and Tamil Nadu (Rs 5,797 crore).

Consultants stated that the newest devolution will assist states preserve their tempo of expenditure within the build-up to the overall elections, anticipated in April-Could.

Beneath the present framework, 41% of taxes collected by the Centre is shared with states, normally in 14 instalments throughout a monetary 12 months.

These funds are earmarked to states based mostly on a predefined method determined by the Finance Fee that components in standards, together with inhabitants, space, and monetary capability.

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