Government Boosts State Finances with Rs 1.39 Lakh Crore Tax Devolution

The Indian government authorized the release of Rs 1,39,750 crore to states in June, including an additional installment. This move aims to enable state governments to accelerate development and capital spending. The total tax devolution for FY 2024-25 till June 2024 amounts to Rs 2,79,500 crore.

In a significant move to bolster state finances, the central government on Monday approved the release of Rs 1,39,750 crore to states for the month of June. This includes an additional installment beyond the regular devolution amount.

This cumulative release, the Finance Ministry announced, aims to accelerate development and capital spending by state governments. 'This cumulatively amounts to Rs 1,39,750 crore in the current month,' the Ministry said.

The devolution process, where 41 per cent of taxes collected by the Centre is shared with states, is done in 14 installments during a fiscal year. The Interim Budget 2024-25 earmarked Rs 12,19,783 crore for this purpose. By June 10, 2024, the total tax devolution to states has reached Rs 2,79,500 crore.

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