Centre Releases Additional ₹1.09 Lakh Crore Tax Devolution To States

Business Standard · business

The Centre has released an additional instalment of tax devolution amounting to over ₹1.09 lakh crore to state governments. This release is separate from the regular monthly devolution and marks the second additional instalment for the current financial year. The Finance Ministry stated that this move aims to support states during the upcoming festive season, enabling them to accelerate capital spending and finance development and welfare expenditures. Currently, 41 percent of taxes collected by the Centre are devolved to states over 14 instalments annually.