In a move to spur economic development in states, Finance Ministry has released an additional instalment of tax devolution to states for June 2024. The total amount released to states for June now stands at Rs 139,750 crore.

This decision was taken to accelerate development projects of different states so that their any projects should not get delayed because of capital requirement.

Finance Ministry’s decision to release tax devolution was taken following a high-level meeting with the Finance Secretary and the Secretary of the Department of Economic Affairs on Monday.

During the meeting, the economic and fiscal conditions of states were thoroughly reviewed, leading to the conclusion that an additional instalment of funds would be necessary.

The biggest chunk of the fund went to Uttar Pradesh at Rs 25,069.88 crore, followed by Bihar at Rs 14,056.12 crore, Madhya Pradesh got Rs 10,970.44 crore, and West Bengal was devolved Rs 10,513.46 crore.

The additional instalment of funds is part of a broader fiscal strategy outlined in the Interim Budget for 2024-25, which has allocated Rs 12,19,783 crore towards the devolution of taxes to states.

With the additional funds being released this month, the cumulative amount devolved to states as of June 10, for the fiscal year 2024-25 has reached Rs 279,500 crore.

This disbursement highlights the central government’s focus on maintaining a steady flow of financial resources to states, ensuring they have the means to undertake crucial development initiatives.

State governments will benefit from this enhanced financial support, enabling them to accelerate their capital expenditures, including critical infrastructure projects such as road construction, public facilities, and other development initiatives.

The Finance Ministry has provided a detailed state-wise breakdown of the funds released, ensuring each state receives its fair share to meet its specific development needs.

As India continues to navigate the complexities of global economic dynamics, the central government’s focus on providing financial support to states is crucial for sustaining growth and fostering development of the country.