Centre releases Rs 1.39 lakh crore installment of Tax Devolution to States

NE BUSINESS BUREAU
NEW DELHI, JUNE 10

It has been decided that apart from the regular release of the devolution amount for the month of June 2024, one additional instalment will be released.  This release cumulatively amounts to Rs. 1,39,750 crore in the current month.

• With today’s release, total Rs. 2,79,500 crore devolved to States for FY2024-25 till 10th June 2024
• Uttar Pradesh gets lion’s share of Rs 25,069.88 cr, followed by Madhya Pradesh 10,970.44 cr, and West Bengal Rs 10,513.46 cr
• Tamil Nadu’s share is Rs 5,700.44 cr, AP Rs 5,655.72 cr and Gujarat Rs 4,860.56

According to the finance ministry, the funds will allow the states to finance various social welfare measures and infrastructure development schemes.

The Interim Budget 2024-25 has a provision of Rs. 12,19,783 crore towards devolution of taxes to States.

With this release, the total amount devolved (for FY 2024-25) to States till 10 June 2024 is Rs. 2,79,500 crore.

Tax devolution, a crucial revenue stream for states, involves the Centre allocating 41% of tax collection to states, according to the Finance Commission’s recommendations. The funds are used for priority sector projects and developmental schemes.

State-wise releases are