New Delhi, Oct 11: Meghalaya has received the highest allocation of funds following Assam and Arunachal Pradesh in the North East, as tax devolution from the Union government that on Thursday released tax devolution of Rs 1,78,173 crore to the states.
In the North East, Meghalaya was allocated ₹1,367 crore, Tripura ₹1,261 crore and Manipur ₹1,276 crore, Nagaland ₹1,014 crore, Mizoram ₹891 crore, and Sikkim 691 crore as tax devolution by the Central government.
The region’s largest state Arunachal Pradesh bordering China was allocated ₹3,131 crore while 5,573 crore was allocated to the region’s most populated state Assam.
In view of the festive season, the Centre also released an advance instalment of Rs 89,086.50 crore in addition to regular monthly instalments of the same amount.
Advance instalment released in view of upcoming festive season and to enable states to accelerate capital spending and finance their development/welfare-related expenditure, the Finance Ministry said in a statement.
Currently, 41 per cent of taxes collected by the Centre is devolved to states on a regular instalments.
The allocation is aimed at ensuring that States have the financial resources needed to stimulate development, especially during a period of increased economic activity ahead of the festive season.
The largest share of the funds went to Uttar Pradesh, which received ₹31,962 crore. Bihar followed with ₹17,921 crore, while Madhya Pradesh and West Bengal received ₹13,987 crore and ₹13,404 crore, respectively.
Among other States, Andhra Pradesh received ₹7,211 crore, Tamil Nadu received ₹7,268 crore and Gujarat received ₹6,197 crore.
The Finance Ministry noted that the decision to release these funds was aimed at empowering States to ramp up capital spending and support essential welfare and developmental projects.
This accelerated funding is intended to boost critical infrastructure projects such as road construction, public facilities, and other State-led development initiatives.
This announcement came after a high-level meeting between the Finance Secretary and the Secretary of the Department of Economic Affairs, emphasising the government’s commitment to sustain economic growth through State-level investments.
The Ministry emphasised that this tax devolution aligns with the recommendations of the Finance Commission, which plays a crucial role in determining the distribution of tax revenue between the Union and States.
This year’s devolution reflects the Centre’s ongoing focus on supporting States as they undertake vital infrastructure projects and social welfare initiatives.
