Festive boost for states: Centre releases Rs 1.09 lakh crore; who gets how much?

According to the Finance Ministry, the early release is aimed at helping states speed up capital spending and meet development and welfare-related expenses during the festive period.

In Short

• Centre released Rs 1.09 lakh crore early to states before festive season
• Uttar Pradesh got highest share at Rs 19,208 crore
• Funds aim to boost capital spending and welfare during festivals

The Centre has released Rs 1.09 lakh crore to state governments ahead of the festive season, giving them additional funds to meet development and welfare needs. The regular monthly instalment, which was due on November 10, was released five days early, on November 5.

Uttar Pradesh received the largest share of the amount at Rs 19,208 crore, followed by Bihar with Rs 10,845 crore and Madhya Pradesh with Rs 8,010 crore.

According to the Finance Ministry, the early release is aimed at helping states speed up capital spending and meet development and welfare-related expenses during the festive period.

HOW MUCH DID EACH STATE RECEIVE?

The tax devolution amount was distributed among states based on their respective shares. Apart from the three largest recipients, West Bengal's share was Rs 7,866 crore Maharashtra received Rs 7,022 crore, Rajasthan got Rs 6,460 crore and Odisha was allocated Rs 4,819 crore.

Andhra Pradesh received Rs 4,597 crore, while Karnataka got Rs 4,504 crore. Tamil Nadu was allocated Rs 4,466 crore and Gujarat received Rs 4,094 crore. Jharkhand got Rs 3,660 crore, while Chhattisgarh received Rs 3,602 crore.

Assam was allocated Rs 3,552 crore, followed by Kerala with Rs 2,597 crore and Telangana with Rs 2,370 crore. Punjab received Rs 2,176 crore, while Haryana was allocated Rs 1,484 crore.

Among the smaller allocations, Arunachal Pradesh received Rs 1,476 crore, Uttarakhand got Rs 1,244 crore and Himachal Pradesh was allocated Rs 996 crore. Tripura received Rs 699 crore, Meghalaya Rs 688 crore and Manipur Rs 682 crore.

Mizoram was allocated Rs 615 crore, Nagaland Rs 524 crore, Goa Rs 398 crore and Sikkim Rs 365 crore.

WHY HAS THE CENTRE RELEASED THE MONEY EARLY?

The regular monthly tax devolution instalment is usually released on the 10th of every month. However, the government advanced the November payment to November 5, citing the upcoming festive season and the need to support state spending.

The funds are expected to help states take up infrastructure and development projects, while also meeting expenditure on welfare schemes and other public services.

Tax devolution refers to the share of the Centre's tax revenue that is transferred to state governments. These funds help states meet their spending requirements and finance development activities.

HOW IS THIS DIFFERENT FROM THE OCTOBER 31 RELEASE?

The November 5 payment should be seen separately from the additional tax devolution instalment released on October 31.

On October 31, the Centre had released an additional Rs 1,09,019 crore to states over and above the regular monthly devolution. It was the second additional instalment released during the current financial year.

The November 5 payment, in contrast, is the regular monthly instalment for November, which was advanced by five days. Both releases were made ahead of the festive season to help states meet their spending needs.

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