Centre releases ₹72,961.21 crore as addl instalment of tax devolution to states

NEW DELHI: The Union Government has authorised the release of an additional instalment of tax devolution amounting to ₹72,961.21 crore ahead of the forthcoming festivities and the New Year, the finance ministry said on Friday.

The move aims to strengthen the hands of state governments for financing various social welfare measures and infrastructure development schemes, it said.

This instalment is in addition to the tax devolution instalment due to states on January 10, 2024 and the instalment of ₹72,961.21 crore already released on December 11, 2023, it said.

In addition to that the central government already released ₹900 crore for flood relief to Tamil Nadu,

Finance minister Nirmala Sithraman told reporters on Friday that the central government has already released ₹900 crore for flood relief. According to the data released by the ministry, the additional instalment of tax devolution authorised by the Centre includes ₹2,967.10 crore share of Tamil Nadu, the finance ministry statement said.