A higher amount is being devolved this month to enable states to accelerate capital spending and finance their development and welfare-related expenditures, centre said.
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The Union Government has released tax devolution of Rs 1,73,030 crore to State Governments, an amount higher that last month.
A higher amount is being devolved this month to enable states to accelerate capital spending and finance their development and welfare-related expenditures, centre said.
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In December, the union has released Rs 89,086 crore.
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In terms of the state-wise shares, Uttar Pradesh got the highest amount of Rs 31,039.84 crore, followed by Rs 17,403.36 crore to Bihar and Rs 13017.06 crore to West Bengal.
Maharashtra is given Rs 10.930.31 crore while Rajasthan received Rs 10,426.78 crore.
The smallest amounts were given to Goa and Sikkim of Rs 667.91 crore and Rs 671.35 crore respectively.
Tax devolution refers to the distribution of tax revenues between the central government and the state governments.
The share of states in the central taxes for the 2021 to 2026 period is recommended to be 41%, same as that for 2020-21. This is less than the 42% share recommended by the 14th Finance Commission for 2015-20 period.
It is a constitutional mechanism to allocate the proceeds of certain taxes among the Union and the states in a fair and equitable manner.
The division of net proceeds of taxes between the union and the states is recommended by the Finance Commission.
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