State receives ₹1327 cr from Centre as tax devolution

Shillong, Jan 11: The state government received ₹1327.13 crore as tax devolution from the Central government on Friday.

The Union government released tax devolution of ₹1,73,030 crore to state governments on Friday, as against the devolution of ₹89,086 crore in December 2024.

A higher amount is being devolved this month to enable states to accelerate capital spending and finance their development and welfare-related expenditures, the Finance Ministry said.

As many as 26 states have been listed in the package announced on Friday.

Neighbouring Assam with a bigger economy and much higher population has received ₹5,412.38 crore while Manipur got ₹1,238.9 crore as tax devolution.

The funds released also include ₹13,017.06 crore for West Bengal, ₹7,002.52 crore for Andhra Pradesh, ₹6,310.40 crore for Karnataka, ₹5,895.13 crore for Chhattisgarh, ₹1,436.16 crore for Himachal Pradesh, ₹3,330.83 crore for Kerala, ₹3,126.65 crore for Punjab, and ₹7,057.89 crore for Tamil Nadu.

Among the other states, Uttar Pradesh has got ₹31,039.84 crore, Maharashtra ₹10,930.31 crore, Gujarat ₹6,017.99 crore, Madya Pradesh ₹13,582.86 crore.

Tax devolution is the process of distributing the net proceeds of taxes collected by the Union government to the states. The Union government distributes taxes to states in regular installments based on the recommendations of the Finance Commission.

The Finance Commission recommends the share of states in the total net proceeds of all taxes, including corporation tax, personal income tax, and central GST.

The 15th Finance Commission recommended that 41 per cent of the Central government’s divisible tax pool be allocated to states for the period 2021-26. This is known as vertical devolution.

It also recommended criteria for distributing the funds among states, known as horizontal devolution. These criteria included “income distance” which reflects the difference in a state’s income from the state with the highest per capita income, the size of the population of the state as per the 2011 Census, and the share of dense forest in each state

The strong collection of taxes in a fast-growing economy has helped the Centre to pass on more taxes to the states.

Hot this week

Pay hike of Assam ministers, MLAs likely as 3-member panel submits report

Full report likely by Oct 30 Guwahati Sept 25: There...

Meghalaya Biological Park Inaugurated After 25 Years: A New Chapter in Conservation and Education

Shillong, Nov 28: Though it took nearly 25 years...

ANSAM rejects Kuki’s separate administration demand, says bifurcation not acceptable

Guwahati, Sept 8: Rejecting the separate administration demand of...

Meghalaya man missing in Bangkok

Shillong, Jan 10: A 57-year-old Meghalaya resident, Mr. Treactchell...

Meghalaya’s historic fiber paves the way for eco-friendly products and sustainable livelihoods

By Roopak Goswami Shillong, Oct 25: From making earbuds to...

From Manipur to Nagaland, Northeast salutes Kargil heroes with unity, rallies, and remembrance

Guwahati, July 26: Marking the 26th anniversary of India’s...

Assam pays tribute to Kargil heroes: Governor leads wreath-laying ceremony on 26th Vijay Diwas

Guwahati, July 26: Assam Governor Lakshman Prasad Acharya led...

BJP govt working for welfare of indigenous people: Tripura CM

Agartala, Jul 26 : Tripura Chief Minister Manik Saha...

Committed to strengthening grassroots policing: Arunachal home minister

Itanagar, Jul 26 : Arunachal Pradesh Home Minister Mama...

Assam pays tribute to Kargil heroes on Vijay Diwas

Guwahati, Jul 26 : Assam on Saturday paid tribute...

Manipur DGP urges youth to reject violence on Kargil Vijay Diwas

Imphal, Jul 26: As the nation observed the 26th...
spot_img

Related Articles

Popular Categories