To bolster the financial capacities of state governments ahead of the festive season and the approaching new year, the Indian government on Friday (December 22) announced an additional instalment of tax devolution, amounting to ₹72,961.21 crore.
This financial infusion is designed to empower state governments in implementing a range of social welfare initiatives and advancing critical infrastructure development projects.
"In view of the forthcoming festivities and the New Year, the Union Government has authorised the release of an additional installment of tax devolution amounting to ₹72,961.21 crore to strengthen the hands of State Governments for financing various social welfare measures and infrastructure development schemes," the ministry stated.
This supplementary instalment comes in addition to the tax devolution originally scheduled for January 10, 2024, and a previous disbursement of ₹72,961.21 crore released on December 11, 2023.
"This installment is in addition to the tax devolution installment due to States on January 10, 2024, and the installment of ₹72,961.21 crore already released on December 11, 2023," the ministry added.
Uttar Pradesh received the highest allocation with ₹13,088.51 crore. Close behind was Maharashtra securing ₹4,608.96 crore while Rajasthan got ₹4,396.64 crore. Mizoram received ₹364.80 crore, Sikkim ₹283.10 crore and Goa ₹281.63 crore.
