The Union Government has disbursed ₹1,78,173 crore in tax devolution to state governments on 10th October 2024, nearly double the regular monthly devolution of ₹89,086.50 crore.
This amount includes an advance instalment, provided ahead of schedule, in addition to the regular October instalment. The enhanced release is intended to help states manage the heightened expenditure associated with the upcoming festive season and to boost capital investment and development initiatives.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
Uttar Pradesh received the largest share of ₹31,962 crore, reflecting its population and fiscal needs. However, it is to be noted that the least tax shares were received by Goa (Rs. 688 cr), Sikkim (Rs. 691 cr), and Mizoram (Rs. 891 cr). Kerala received the share of Rs. 3430 crores.
After UP’s highest share, the second highest share was received by Bihar (Rs. 17,921 cr), and Madhya Pradesh (Rs. 13,987 cr).
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
The tax devolution formula is the system used by the central government to share its tax revenue with state governments. This distribution is determined based on recommendations from the Finance Commission, a constitutional body that is appointed every five years to decide how the revenue should be divided. The important components considered while sharing are the population, area, income, demographic performance, tax and fiscal efforts..etc.
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