Finance Ministry Releases Rs 72,961 Crore To States In Additional Tax Devolution

In a move aimed at supporting social welfare measures and infrastructure development during the festive season and New Year, the Centre has released an additional installment of tax devolution amounting to Rs 72,961.21 crore to states, as announced by the Finance Ministry on Friday (22 December).

Traditionally, money from the divisible tax pool is devolved to states in 14 annual installments, comprising 11 in 11 months and three in March.

The latest installment is in addition to the regular devolution process.

As reported by Business Standard, the Finance Ministry clarified that this extra disbursement supplements the tax devolution due to states on 10 January 2023, and the Rs 72,961.21 crore released on 11 December this year.

Uttar Pradesh receives the highest installment of Rs 13,088.51 crore, followed by Bihar with Rs 7,338 crore and West Bengal with Rs 5,488.88 crore.

Conversely, states such as Goa and Sikkim receive the smallest devolution, with amounts of Rs 281 crore and Rs 283 crore, respectively.

This additional financial support is expected to bolster states' efforts in implementing crucial social welfare initiatives and advancing infrastructure projects, enhancing their capacity to address the needs of the citizens during the festive season and in the coming year.