The government on Friday released the 14 installment of tax devolution of more than Rs 1.40 lakh crore to states. Uttar Pradesh received the highest installment of Rs 24,783 crore among all states.
As per data by the Controller General of Accounts, the Center has devolved Rs 6.68 lakh crore to states in the current financial year during April-January, up 22.4 percent from last year. Currently, 41 percent of taxes collected by the Center are devolved in 14 installments among states in a financial year. In August and November 2022, the Center released an advance installment each in addition to the regular monthly installment of tax devolution to states, helping ease the fiscal pressure on states.
“The Union Government has released the 14th installment of tax devolution to state governments, amounting to Rs 1,40,318 crore today, as against the normal monthly devolution of Rs 70,159 crore,” the finance ministry said in a statement on Friday. This is in line with the commitment of the Government of India to strengthen the hands of states to accelerate their capital and developmental expenditure, it read.
The budget for 2022–23 projected tax devolution to states of Rs 8.17 lakh crore, which was then scaled up to Rs 9.16 lakh crore in the revised estimates, up from Rs 8.98 lakh crore devolved last year.