Categories: Economy

₹1.2 Trillion Released as Third Tax Devolution to States by Govt

The Ministry of Finance announced that the Central government had provided the state governments with the third instalment of tax devolution worth a total of ₹1,18,280 crore. Andhra Pradesh received ₹4,787 crore, while Arunachal Pradesh was given ₹2,078 crore. Assam, Bihar, Chhattisgarh, and Gujarat received ₹3,700 crore, ₹11,897 crore, ₹4,030 crore, and ₹4,114 crore, respectively.

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What are the Key Features of the fund allocation?

This amount surpasses the monthly devolution of ₹59,140 crore and reveals the government’s dedication to supporting the fiscal needs of state governments.
The additional advance instalment provided to the states will facilitate capital spending, finance development and welfare-related expenditures, and ensure the availability of resources for priority projects and schemes.

What is the criteria to allocate funds to the state?

The allocation of funds to each state was based on a formula that considers population, area, and fiscal capacity. The state-wise distribution of the net proceeds of union taxes and duties for June 2023 reveals the amounts received by each state.

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