In a move aimed at bolstering social welfare initiatives and infrastructure development schemes, the Centre has disbursed a sum of ₹72,961.21 crore to states as part of tax devolution proceeds. This allocation comes in addition to the scheduled tax devolution due on 10 January 2024 and a prior disbursement of ₹72,961.21 crore on 11 December 2023. The funds are distributed in 14 installments throughout the year, including monthly payments and three additional disbursements in March.
Uttar Pradesh leads the allocation chart, receiving ₹13,088.51 crore, followed by Bihar at ₹7,338 crore, Madhya Pradesh at ₹5,727.44 crore, West Bengal at ₹5,488.88 crore, Maharashtra at ₹4,608.96 crore, Rajasthan at ₹4,396.64 crore, and Odisha at ₹3,303.69 crore. Smaller allocations have been made to states like Goa (₹281.63 crore), Sikkim (₹283.10 crore), Mizoram (₹364.80 crore), and Nagaland (₹415.15 crore).
Tax devolution, constituting around 41% of the Centre’s tax collections annually, serves as a vital source of funding for state governments. The funds are crucial for the implementation of developmental projects, welfare programs, and priority sector initiatives.
