Central Government Boosts States' Festive Season Funds with Rs 1.78 Lakh Crore Tax Devolution

In a strategic pre-festive move, the central government has disbursed Rs 1.78 lakh crore to states, doubling the usual tax revenue distribution amount. This includes an advance installment to bolster capital expenditure, especially in infrastructure, across states like Uttar Pradesh, Bihar, and others.

In a significant financial distribution ahead of the festive season, the central government has increased its tax revenue devolution to states, allocating over Rs 1.78 lakh crore. This figure notably surpasses the standard monthly disbursement of Rs 89,086.50 crore, the Finance Ministry announced on Thursday. The total allocation includes an additional advance installment meant to aid states in boosting capital and development expenditures during the festive period.

Uttar Pradesh received the largest share at Rs 31,962 crore, followed by Bihar and Madhya Pradesh at Rs 17,921 crore and Rs 13,987 crore respectively. West Bengal was allocated Rs 13,404 crore. This substantial monetary flow underscores the government's commitment to maintaining steady financial support for states, enabling them to efficiently carry out essential development projects.

This allocation decision came after a high-level conference involving the Finance Secretary and the Secretary of the Department of Economic Affairs. Enhanced funding will empower state governments to expedite capital expenditures on critical projects like infrastructure development. The Ministry has meticulously detailed the amounts allocated to each state, as part of a broader strategy to ensure fair distribution in line with specific developmental necessities.

(With inputs from agencies.)