Centre releases Rs 1.78 lakh crore to states for festive season, with largest shares to Uttar Pradesh, Bihar, and Madhya Pradesh

In anticipation of the upcoming festive season, the central government has released over Rs 1.78 lakh crore to various states as part of its tax revenue devolution. This substantial disbursement, announced by the Finance Ministry on Thursday, includes an advance instalment in addition to the standard monthly release, effectively doubling the usual allocation of Rs 89,086.50 crore for October 2024.

The largest share of the funds went to Uttar Pradesh, which received Rs 31,962 crore. Bihar followed with Rs 17,921 crore, while Madhya Pradesh and West Bengal received Rs 13,987 crore and Rs 13,404 crore, respectively. This allocation underscores the central government's commitment to ensuring that states have the financial resources needed to stimulate development, especially during a period of increased economic activity ahead of the festive season.

Among the other states, Andhra Pradesh received Rs 7,211 crore, Tamil Nadu received Rs 7,268 crore, and Gujarat received Rs 6,197 crore. In the Northeast, Meghalaya was allocated Rs 1,367 crore, Tripura Rs 1,261 crore, and Manipur Rs 1,276 crore.

The Finance Ministry noted that the decision to release these funds was aimed at empowering states to ramp up capital spending and support essential welfare and developmental projects. This accelerated funding is intended to boost critical infrastructure projects such as road construction, public facilities, and other state-led development initiatives.

This announcement follows a high-level meeting involving the Finance Secretary and the Secretary of the Department of Economic Affairs, emphasising the government’s commitment to sustaining economic growth through state-level investments. By providing the funds ahead of schedule, the Centre aims to ensure that states are equipped to meet the demands of the festive season, while also fostering sustained growth and long-term development.

The Ministry emphasised that this tax devolution aligns with the recommendations of the Finance Commission, which plays a crucial role in determining the distribution of tax revenue between the Union and states. This year’s devolution reflects the central government’s ongoing focus on supporting states as they undertake vital infrastructure projects and social welfare initiatives.

(With inputs from ANI)