Union Government Releases Rs 1.18 Lakh Crore Double Tax Devolution Instalment To States

The Union Government has released a double tax devolution instalment of Rs 1.18 lakh crore to the states. This decision showcases the commitment of the government towards cooperative federalism and its dedication to strengthening the financial capabilities of the states.

The transfer is part of the monthly transfer of federal revenues to states, but it was greater than the typical monthly devolution amount of 591.40 billion rupees, according to the government.

"One advance instalment in addition to the regular instalment due in June 2023 is being released to states to enable them to speed up capital spending, finance their development/ welfare related expenditure and also to make available resources for priority projects/ schemes," the finance ministry said in a statement on June 12.
This is the third installment of tax devolution to states for the current fiscal year.

Every year, the Centre distributes tax devolution to the states in 14 equal installments. As a result, the instalment will be double the typical monthly amount for two months. However, these double-instalment months typically occur near the end of the fiscal year, when the Centre has a better understanding of its finances.