The Union Government has released the third instalment of tax devolution to State Governments amounting to ₹1,18,280 crore on 12th June, 2023. The distribution of the funds is as follows:
| SL No. | State | Amount (in crores) |
|---|---|---|
| 1 | Uttar Pradesh | 21,218 |
| 2 | Bihar | 11,897 |
| 3 | Madhya Pradesh | 9,285 |
| 4 | West Bengal | 8,898 |
| 5 | Maharashtra | 7,472 |
| 6 | Rajasthan | 7,128 |
| 7 | Odisha | 5,356 |
| 8 | Tamil Nadu | 4,825 |
| 9 | Andhra Pradesh | 4,787 |
| 10 | KARNATAKA | 4314 |
The total amount released by the Centre is ₹1,18,280 crore. This is an advance instalment in addition to the normal monthly devolution due in June 2023. The advance instalment is being released to the states to enable them to speed up capital spending, finance their development/welfare-related expenditure and also to make available resources for priority projects/ schemes.
The distribution of the funds is based on the recommendations of the 15th Finance Commission. The Commission has fixed the share of states at 41% of the net proceeds of sharable Central Taxes and Income Tax. The remaining 59% is shared between the Centre and the Union Territories.
The distribution of the funds is a significant step towards ensuring fiscal federalism in India. It will help the states to meet their developmental and welfare needs and also to improve their infrastructure.
Sources: pib.gov.in/PressReleasePage.aspx?PRID=1931624