Central Government Boosts State Funds Ahead of Festive Season

Central Government Boosts State Funds Ahead of Festive Season

Central Government Boosts State Funds Ahead of Festive Season

The central government has released over Rs 1.78 lakh crore to states as tax revenue devolution, exceeding the usual monthly amount of Rs 89,086.50 crore. This includes an advance installment to support states during the festive season and enhance capital spending.

State-wise Fund Allocation

Uttar Pradesh received the largest share at Rs 31,962 crore, followed by Bihar with Rs 17,921 crore, Madhya Pradesh at Rs 13,987 crore, and West Bengal with Rs 13,404 crore. Andhra Pradesh got Rs 7,211 crore, Gujarat received Rs 6,197 crore, and Tamil Nadu received Rs 7,268 crore. Among the Northeast states, Meghalaya received Rs 1,367 crore, Tripura got Rs 1,261 crore, and Manipur got Rs 1,276 crore.

Purpose of the Funds

The funds aim to support infrastructure and development projects, including road construction and public facilities. The Finance Ministry’s decision follows a high-level meeting to ensure states receive necessary financial resources.

Importance of Tax Devolution

Devolution of taxes involves distributing the net proceeds of taxes between the Union and the states in India, based on the Finance Commission’s recommendations. This process is crucial for sustaining growth and fostering development across the country.

Doubts Revealed


Central Government -: The Central Government is the main government of India that makes decisions for the whole country. It is different from state governments, which make decisions for individual states.

Tax Revenue Devolution -: Tax Revenue Devolution is when the central government gives a portion of the money it collects from taxes to the state governments. This helps states have money for their own projects and needs.

Rs 1.78 lakh crore -: Rs 1.78 lakh crore is a very large amount of money. In India, ‘lakh’ means 100,000 and ‘crore’ means 10 million, so 1.78 lakh crore is 178,000 crore rupees.

Advance Installment -: An advance installment is money given ahead of time. In this case, the central government is giving states extra money before the usual time to help them during the festive season.

Festive Season -: The festive season in India includes important festivals like Diwali and Dussehra. During this time, people celebrate with family and friends, and there is often more spending on gifts and celebrations.

Capital Spending -: Capital spending is when money is used to build things like roads, schools, and hospitals. It helps improve infrastructure and development in a state or country.

Finance Ministry -: The Finance Ministry is a part of the central government that manages the country’s money. It makes decisions about how to collect and spend money for the country.

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