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Central government released Rs 1.73 lakh crore to the states

by Sandhya Hirani
January 10, 2025
Central government released Rs 1.73 lakh crore to the states

New Delhi, January 10 (IANS). The Central government on Friday released Rs 1,73,030 crore as tax share to state governments. This figure is more than the transfer of Rs 89,086 crore released in December 2024.

The Finance Ministry said the higher transfers made this month will help states accelerate capital expenditure and finance development and welfare expenditure.

Under the package announced on Friday, money has been released to 26 states.

This includes Rs 13,017.06 crore for West Bengal, Rs 7,002.52 crore for Andhra Pradesh, Rs 6,310.40 crore for Karnataka, Rs 5,412.38 crore for Assam, Rs 5,895.13 crore for Chhattisgarh, Rs 1,436.16 crore for Himachal Pradesh, Rs 3,330.83 crore for Kerala. crore rupees, for Punjab Rs 3,126.65 crore has been released and Rs 7,057.89 crore has been released for Tamil Nadu.

Among other states, Uttar Pradesh has been given Rs 31,039.84 crore, Maharashtra Rs 10,930.31 crore, Gujarat Rs 6,017.99 crore, Madhya Pradesh Rs 13,582.86 crore, Manipur Rs 1,238.9 crore and Meghalaya Rs 1,327.13 crore.

Tax devolution is the process of distributing the net income of taxes collected by the central government to the states.

The central government distributes taxes to the states in regular installments based on the recommendations of the Finance Commission.

The Finance Commission recommends the states’ share in the total net income of all taxes, including corporate tax, income tax and central GST.

The 15th Finance Commission had recommended that 41 per cent of the divisible tax pool of the central government be allocated to the states for the period 2021-26. This is known as vertical transfer.

It also recommended criteria for distributing funds among states, known as horizontal transfer.

–IANS

abs/

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