Centre releases additional Rs 1.09 lakh crore tax devolution to states
The Union Government provided the second advance instalment of the financial year to boost spending ahead of the festive season.
The Union Government released an additional instalment of tax devolution worth Rs 1,09,019 crore to state governments on Saturday, October 31, according to Moneycontrol and The Hindu.
This payment is over and above the regular monthly transfers. It marks the second such additional instalment released during the current financial year, following a similar release of Rs 1.09 lakh crore in August.
The Finance Ministry stated that the move aims to provide states with extra liquidity to speed up capital expenditure projects, support infrastructure development, and fund welfare initiatives before the festive season.
According to The Hawk, Uttar Pradesh received Rs 19,208 crore, while Bihar received Rs 10,845 crore. Other recipients included Madhya Pradesh with Rs 8,010 crore, West Bengal with Rs 7,866 crore, Maharashtra with Rs 7,022 crore, and Rajasthan with Rs 6,460 crore.
Currently, 41 per cent of taxes collected by the Centre are distributed to states in 14 instalments during a fiscal year. Tax devolution is the portion of central taxes shared with state governments based on Finance Commission recommendations.
Official figures also showed that India’s fiscal deficit for the first six months of the current financial year reached Rs 7.14 lakh crore, which is 42.1 per cent of the full-year budget estimate.