Government Boosts State Funds with Festive Tax Devolution

The Indian government has disbursed Rs 1,78,173 crore to states, including an advance instalment, to boost capital spending amid the festive season. This includes the routine monthly distribution of Rs 89,086.50 crore. The Finance Ministry aims to aid states in accelerating their development and welfare expenditures through these funds.

The union government on Thursday disbursed a substantial sum of Rs 1,78,173 crore to various states, making an early payment of Rs 89,086.50 crore as part of the festive season strategy. This is in addition to the usual monthly disbursement aimed at enhancing capital expenditure.

The regions have received their normal monthly sum of Rs 89,086.50 crore, ensuring a steady flow of funds. This move comes as the festive season approaches, providing states the financial leeway to speed up their capital spending and focus further on development and welfare projects.

The finance ministry confirms that this allocation is part of the regular fiscal process where 41 percent of taxes collected by the central government is distributed to states, assisting them in managing expenditures efficiently and supporting local economies amid the festive period.

(With inputs from agencies.)