In addition to the previously released tax devolution of Rs 72,961 crore on February 12, 2024, states have now received another devolution. This brings the total number of tax devolution instalments received by the states in February 2024 to three.
The Centre has released two additional instalments of tax devolution of Rs 1,42,122 crore to state governments, the Finance Ministry said Thursday. The additional instalments have been released to support states for “financing various social welfare measures and infrastructure development schemes,” it said.
This devolution is in addition to the tax devolution of Rs 72,961 crore already released on February 12, 2024. With Thursday’s release, states have received three instalments of tax devolution in February 2024.
As per state-wise breakup, Uttar Pradesh received Rs 25,495 crore, followed by Bihar (Rs 14,295 crore), Madhya Pradesh with Rs 11,157 crore and West Bengal with Rs 10,692 crore in tax devolution in the third tranche.
As per the norm, tax devolution is made through 14 instalments to states in a year, with at least one instalment in each month and two extra instalments released in the last two months of the year. Since 2022-23, the Centre has been frontloading the two extra instalments in the first nine months to boost states’ funds for expenditure, especially capex.
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