Modi 3.0: Finance Ministry releases Rs 1.39 lakh crore installment of tax devolution to states

The Finance Ministry under the newly formed National Democratic Alliance (NDA) government at the Centre has decided to release one additional instalment of devolution of taxes to states besides the devolution amount for the month of June 2024.  The total amount, adding both, comes to Rs 1,39,750 crore in the current month. This will enable state governments to accelerate development and capital spending. 

The Interim Budget 2024-25 had a provision of Rs 12,19,783 crore towards devolution of taxes to states. With this release, the total amount devolved (for FY 2024-25) to states till June 10, 2024 is Rs 2,79,500 crore.

As per the allocations, Uttar Pradesh has got the highest amount of Rs 25069.88 crore. The state with the second highest allocation is Bihar with Rs 14056.12 crore. The state on the third spot is Madhya Pradesh with Rs 10970.44 crore. 

Here's the detailed table with state allocation details:

In February this year, the Centre released Rs 1.42 lakh crore in tax devolution to the states, supplementing the Rs 72,961 crore disbursed earlier in the same month. According to the finance ministry, the funds will allow the states to finance various social welfare measures and infrastructure development schemes. "With this release, states have received total of three instalments of tax devolution in February 2024," it added.

Uttar Pradesh led with Rs 25,495 crore, followed by Bihar ( Rs 14,295 crore), Madhya Pradesh ( Rs 11,157 crore), and West Bengal ( Rs 10,692 crore) in tax devolution for the third tranche. Smaller allocations were made to Goa ( Rs 549 crore), Sikkim ( Rs 551 crore), Mizoram ( Rs 711 crore), and Nagaland (Rs 809 crore).