The Union government today announced that it has released Rs 1.18 lakh crore to states as tax devolution which is double the “normal monthly devolution” of Rs 59,140 crore.
“One advance instalment in addition to the regular instalment due in June 2023 is being released to states to enable them to speed up capital spending, finance their development and welfare related expenditure and also to make available resources for priority projects,” the finance ministry said in a statement.
This is the third instalment of tax devolution to states for the current financial year.
The Centre releases tax devolution to states in 14 equal instalments every year. As such, this involves two months where the instalment is double the usual monthly amount. However, these double-instalment months normally come at the end of the financial year after the Centre has greater clarity on its finances.
Amounts handed over to states from Net Proceeds of Union Taxes and Duties for June 2023 (All figures in crore rupees):
ANDHRA PRADESH Rs 4,787 crore , ASSAM 3700, BIHAR 11897, CHHATTISGARH 4030, GUJARAT 4114, JHARKHAND 3912, KARNATAKA 4314, KERALA 2277, MADHYA PRADESH 9285, MAHARASHTRA 7472, ODISHA 5356, PUNJAB 2137, RAJASTHAN 7128, TAMIL NADU 4825, TELANGANA 2486, UTTAR PRADESH 21218, WEST BENGAL 8898.