The Centre on Monday released Rs 1.18 lakh crore as the third instalment of tax devolution to states in June, as per the finance ministry statement.According to the statement, the Centre released Rs 2,486 crore to Telangana state and Rs 4,787 crore to Andhra Pradesh towards the tax devolution.
“The union government has released 3rd instalment of tax devolution to State Governments amounting to Rs 1,18,280 crore on 12th June 2023, as against normal monthly devolution of Rs 59,140 crore,” the ministry said in a statement.
One advance instalment in addition to the regular instalment due in June was released to states to enable them to speed up capital spending and to fund development programmes and welfare schemes.
The Centre released third instalment of tax devolution to all the states amounting to Rs 1,18,280 core as against normal monthly devolution of Rs 59,140 crore.
Uttar Pradesh received the highest share of Rs 21,218 crore and Goa the the least at Rs 457 crore.The funds are allocated to the states based on various factors such as population, area and fiscal capacity.
The advance instalment was released to make available resources for state governments for implementation of their priority projects/schemes.
Currently, 41% of taxes collected by the centre is devolved in 14 instalments to states during a fiscal year.
