Union Finance Minister Nirmala Sitharaman
| Photo Credit: ANI

The Centre on Friday (January 10, 2025) released tax devolution of ₹1.73 lakh crore to the state governments to accelerate capital expenditure and finance welfare activities.

“A higher amount is being devolved this month to enable states to accelerate capital spending and finance their development and welfare-related expenditures,” the finance ministry said in a statement.

The Union government has released tax devolution of ₹1,73,030 crore to state governments on Friday, as against the devolution of ₹89,086 crore in December 2024, the ministry added.

Currently, 41% of taxes collected by the Centre is devolved in instalments among states during a fiscal year.