NewKerala.com

Key Points

The Indian government has strategically released an additional Rs 1,01,603 crore to state governments as festive season tax devolution. This move aims to boost capital spending and support welfare initiatives across different states. Uttar Pradesh leads the beneficiary list with Rs 18,227 crore, followed by other major states. The transfer represents a significant increase from the previous year, reflecting the Centre's commitment to fiscal support and economic development.

Key Points: Centre Boosts States with Rs 1.01 Lakh Crore Festive Tax Devolution

  • Uttar Pradesh receives highest Rs 18,227 crore in tax devolution
  • Additional fund release aims to support state welfare and development
  • Tax transfer 61,914 crore higher compared to previous year
  • Centre's total tax revenue reaches Rs 10,95,209 crore in current period
2 min read

'Festive booster': Centre releases tax devolution of Rs 1,01,603 crore to state govts

Union government releases additional Rs 1,01,603 crore to state governments, supporting fiscal needs during festive season and development initiatives.

"The decision was taken in view of the festive season to enable states to accelerate capital spending - Finance Ministry"

New Delhi, Oct 1

Amid the ongoing festive season, the Union government has released an additional tax devolution of Rs 1,01,603 crore to state governments, the Finance Ministry said on Wednesday.

This is an additional amount to the normal monthly devolution, which is scheduled to be released on October 10.

According to the ministry, the decision was taken in view festive season to enable states to accelerate capital spending and finance their development and welfare-related expenditure.

Uttar Pradesh, the nation's most populous state, got the highest--Rs 18,227 crore, followed by Bihar (Rs 10,219 crore), Madhya Pradesh (Rs 7,976 crore), West Bengal (Rs 7,644 crore), Maharashtra (Rs 6,418 crore), and Rajasthan (Rs 6,123 crore).

Andhra Pradesh (Rs 4,112 crore), Odisha (Rs 4,601 crore), Tamil Nadu (Rs 4,144 crore), Karnataka (Rs 3,705 crore), and Jharkhand (Rs 3,360 crore) also received significant additional tax devolution.

Earlier, the Finance Ministry said that the Centre had transferred Rs 4,28,544 crore to state governments as devolution of share of taxes during April-July, which is Rs 61,914 crore higher than the previous year.

Meanwhile, the Central government had received Rs 10,95,209 crore during the period, which comprises 31.3 per cent of the corresponding budget estimates (BE) for 2025-26.

Of this, a sum of Rs 6,61,812 crore constitutes net tax revenue to the Centre, Rs 4,03,608 crore was non-tax revenue, and Rs 29,789 crore was part of non-debt capital receipts.

Total Expenditure incurred by the union government during the time frame was Rs 15,63,625 crore, which constitutes 30.9 per cent of the corresponding BE 2025-26.

Out of this total amount, Rs 12,16,699 crore was on the revenue account and Rs 3,46,926 crore is on the capital account, which is spent on large infrastructure projects.

Interest payments made up Rs 4,46,690 crore of the total revenue expenditure, while major subsidies account for Rs 1,13,592 crore.

- IANS

Share this article:

Reader Comments

R
Rohit P
Good to see UP getting the highest allocation - being the most populous state, they need maximum resources for development. But I hope all states use this money wisely and not just for political gains.
S
Sarah B
While the numbers look impressive, I'm concerned about transparency in how these funds will be utilized. State governments should publicly disclose their spending plans for this additional allocation.
A
Arjun K
Perfect timing for the festive season! This should help boost local businesses and create employment opportunities. Hope the states prioritize infrastructure projects that create lasting impact. 🎉
K
Kavya N
As someone from Tamil Nadu, I'm glad to see our state getting significant allocation. Hope this helps complete ongoing infrastructure projects and improves public services in our cities.
M
Michael C
The numbers are staggering - over 1 lakh crore! But I wonder if there's proper monitoring mechanism to ensure this money reaches the intended beneficiaries and doesn't get lost in bureaucracy.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50