The Centre has released ₹1.18 lakh crore as the third instalment of tax devolution to states in June, the Finance Ministry said on Monday.
One advance instalment, in addition to the regular instalment due in June 2023, is being released to 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 Union Government has released 3rd instalment of tax devolution to State Governments amounting to ₹1,18,280 crore on 12th June 2023, as against normal monthly devolution of ₹59,140 crore," the ministry said in a statement.
Currently, 41 per cent of taxes collected by the Centre is devolved in 14 instalments to states during a fiscal year.
