Centre releases Rs 139,750 crore to states for tax transfer for June

To boost economic growth in states, the Finance Ministry has released an additional instalment of tax devolution to states for June 2024. The total amount released to states for June is now Rs 139,750 crore.

This decision was taken to expedite the development projects of various states so that none of their projects get delayed due to requirement of capital.

The decision to release the tax transfer by the Finance Ministry was taken after a high-level meeting with the Finance Secretary and the Secretary of the Department of Economic Affairs on Monday.

During the meeting, the economic and fiscal situation of the states was thoroughly reviewed, resulting in the conclusion that an additional tranche of funds would be necessary.

The largest share of this fund, Rs 25,069.88 crore, was given to Uttar Pradesh, followed by Rs 14,056.12 crore to Bihar, Rs 10,970.44 crore to Madhya Pradesh and Rs 10,513.46 crore to West Bengal.

This additional tranche of funds is part of the broader fiscal strategy outlined in the Interim Budget 2024-25, which allocates Rs 12,19,783 crore for devolution of taxes to the states.

With the additional funds being released this month, the cumulative amount transferred to the states till June 10 for the financial year 2024-25 has reached Rs 279,500 crore.

This disbursement reflects the Central Government’s focus on maintaining a steady flow of financial resources to the States, ensuring that they have the resources to undertake key development initiatives.

State governments will benefit from this enhanced financial support, enabling them to accelerate their capital expenditure, including on critical infrastructure projects such as road construction, public amenities and other development initiatives.

The Finance Ministry has provided a detailed state-wise breakup of the funds released to ensure that every State gets its equitable share to meet its specific development needs.

As India grapples with the complexities of global economic dynamics, the focus of the Central Government on providing financial support to the States is vital to promote the sustainable growth and development of the country.