Centre releases 2 instalments of tax devolution totalling Rs 1.16 lakh crore to states

The government on Thursday released two instalments of tax devolution to states totalling over Rs 1.16 lakh crore to help accelerate their capital expenditure.

"The Union Government has released two instalments of tax devolution to State Governments amounting to Rs. 1,16,665 crore today, as against normal monthly devolution of Rs. 58,333 crore," the finance ministry said in a statement.

This would help strengthen the hands of states to accelerate their capital and developmental expenditure, it added.

Currently, 41 per cent of taxes collected by the Centre is devolved in 14 instalments among states in a fiscal year.