The government on Thursday released two instalments of tax devolution to States totalling over ₹1.16 lakh crore to help accelerate their capital expenditure.
“The Union Government has released two instalments of tax devolution to State Governments amounting to ₹1,16,665 crore today, as against normal monthly devolution of ₹58,333 crore,” the Finance Ministry said in a statement.
This would help strengthen the hands of States to accelerate their capital and developmental expenditure, it added.
Currently, 41% of taxes collected by the Centre is devolved in 14 instalments among States in a fiscal year.
