In a bid to enhance States’ liquidity place forward of the “forthcoming festivities and the New Year”, the Centre on Friday stated it had launched a further tranche of tax devolution dues of almost ₹73,000 crore to State governments.
The newest switch of devolution dues amounting to ₹72,961.21 crore is in “addition to the tax devolution installment due to States on 10 January, 2024 and the installment of ₹72,961.21 crore already released on 11 December 2023”, the Finance Ministry stated in an announcement.
To be clear, the tax devolutions transferred to States as per the assertion had been in keeping with the Budget estimates for the 12 months, and it was solely the timing of the funds launch that has been tweaked.
“The amount and frequency can vary every year, but the tax devolution amount in totality is governed by the Budget estimates, until the revised estimates are presented,” an official stated.
“In view of the forthcoming festivities and the New Year, the Union Government has authorised the release of an additional installment of tax devolution amounting to ₹72,961.21 crore to strengthen the hands of State Governments for financing various social welfare measures and infrastructure development schemes,” the ministry stated.
