Govt Releases Extra ₹1.09 Trillion Tax Devolution To States In October

Business Standard · business

The central government has released an additional ₹1.09 trillion as tax devolution to states in October, marking the second such extra instalment this financial year. This release aims to support states during the upcoming festive season, enabling them to accelerate capital spending and finance development and welfare initiatives. The government typically releases funds in 14 instalments annually and can choose months for double devolution at its discretion. According to the Sixteenth Finance Commission's recommendations, states receive 41 percent of the divisible pool of central taxes.