Centre releases Rs72,961.21 cr more as tax devolution to states
22 Dec 2023
The central government has authorised the release of an additional installment of Rs72,961.21 crore to states as part of its devolution of tax. This is intended to bolster state finances and enable state governments to continue various social welfare measures and infrastructure development schemes.
This installment is in addition to the Rs72,961.21 crore tax devolution due to states on 10 January 2024. That amount was released on 11 December 2023.
The state-wise break up of amounts released is given below:
States Amount (Rs Crore)
Andhra Pradesh 2,952.74
Arunachal Pradesh 1,281.93
Assam 2,282.24
Bihar 7,338.44
Chhattigarh 2,485.79
Goa 281.63
Gujarat 2,537.59
Haryana 797.47
Himachal Pradesh 605.57
Jharkhand 2,412.83
Karnataka 2,660.88
Kerala 1,404.50
Madhya Pradesh 5,727.44
Maharashtra 4,608.96
Manipur 522.41
Meghalaya 559.61
Mizoram 364.80
Nagaland 415.15
Odisha 3303.69
Punjab 1,318.40
Rajastan 4,396.64
Sikkim 283.20
Tamil Nadu 2,976.10
Telangana 1,533.64
Tripura 516.56
Uttar Pradesh 13,088.51
Uttarakhand 815.71
West Bengal 5,488.88
Total 72,961.21
According to the data released by the finance ministry, the additional instalment of tax devolution of Rs2,967.10 crore to Tamil Nadu includes Rs900 crore already released to the state for flood relief.
The Centre disburses about 41 per cent of its tax collections among states for development, welfare and priority sector projects and schemes and this is a key source of finance for state government.
Devolution of taxes to states in usually made in 14 yearly installments, with 12 monthly payments and two additional installments in March.
