New Delhi [India], June 10 : Finance Ministry has announced the release of an additional installment of tax devolution to states for June 2024, in a move to support state finances and spur economic development. The total amount released to states for June now stands at Rs 1,39,750 crore.
This decision aims to provide states with the financial resources needed to accelerate their development projects and capital spending.
The Ministry's decision follows a high-level meeting with the Finance Secretary and the Secretary of the Department of Economic Affairs.
During the meeting, the economic and fiscal conditions were thoroughly reviewed, leading to the conclusion that an additional installment of funds would be necessary.
The additional installment 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 for the fiscal year 2024-25 has reached Rs. 2,79,500 crore as of June 10.
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.
Notable allocations include Rs 25,069.88 crore for Uttar Pradesh, Rs 14,056.12 crore for Bihar, Rs 10,970.44 crore for Madhya Pradesh, and Rs 10,513.46 crore for West Bengal.
As India continues to navigate the complexities of global economic dynamics, the central government's focus on providing robust financial support to states is crucial for sustaining growth and fostering development.
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