The government has released one advance instalment, in addition to the regular instalment due in June 2023, to aid states push up capital spending.
It will also help finance their development/welfare-related expenditure and also to make available resources for priority projects/ schemes.
“The union government has released 3rd instalment of tax devolution to State Governments amounting to Rs 1,18,280 crore on 12th June 2023, as against normal monthly devolution of Rs 59,140 crore,” the ministry said in a statement.
Currently, 41% of taxes collected by the centre is devolved in 14 instalments to states during a fiscal year.
Uttar Pradesh received the highest share of Rs 21,218 crore and Goa the least at Rs 457 crore.The funds are allocated to the states based on various factors such as population, area and fiscal capacity.