Centre Disburses Rs 71,889 Crore for FY 2024-25 to States Following 15th Finance Commission's Recommendations

The Indian government has allocated Rs 71,889 crore to various states for FY 2024-25. The funds, distributed under several headings including disaster relief and local body grants, align with the 15th Finance Commission's guidelines. Major allocations focus on revenue deficits, mitigation efforts, and health sectors to boost state capacities.

The Centre has disbursed Rs 71,889 crore to states for the financial year 2024-25, according to a statement from the Finance Ministry on Sunday. This allocation follows the guidance of the 15th Finance Commission as part of the FinMin Year Review 2024 initiative.

Key allocations include Rs 18,362.25 crore under the post-devolution revenue deficit grant. Additional significant allocations include Rs 6,845.04 crore for urban local bodies, Rs 20,847.25 crore for rural local bodies, and Rs 2,894.01 crore for health sector grants.

Furthermore, Rs 15,823.20 crore has been earmarked under the central share of the State Disaster Response Fund, with an additional Rs 1,385.45 crore under the State Disaster Mitigation Fund. To counter severe natural calamities, Rs 4,050.93 crore has been set aside, complemented by Rs 757.39 crore devoted to fire service improvements, and Rs 276.81 crore for capacity-building. A specific Rs 646.55 crore is allocated to Chennai for urban flood mitigation. The Finance Commission, a constitutional entity, formulates financial recommendations, maintaining center-state relations.

(With inputs from agencies.)