Overview
- The Union government has released an additional tax-devolution instalment of Rs 1,09,019 crore to state governments over and above regular monthly transfers.
- This payment is the second identical discretionary instalment in the current financial year, following an earlier release of the same amount in August.
- Allocations name major recipients and amounts with Uttar Pradesh receiving Rs 19,208 crore, Bihar Rs 10,845 crore, Madhya Pradesh Rs 8,010 crore, West Bengal Rs 7,866 crore, Maharashtra Rs 7,022 crore and Rajasthan Rs 6,460 crore.
- The Finance Ministry says the transfer is timed to the festive season to help states step up capital projects and meet development and welfare spending needs.
- Official half-year fiscal data show a fiscal deficit of Rs 7.14 lakh crore, or 42.1% of the full-year target, and revenue receipts at about 49.7% of the budget estimate, which frames the Centre's use of discretionary liquidity to support states.