India releases ₹1.39 lakh crore in tax devolution to states for June

The Indian government on Monday (June 10) announced the release of an additional instalment of tax devolution to states, amounting to a cumulative sum of ₹1,39,750 crore for the month of June 2024.

This decision aims to empower state governments to expedite development and capital spending initiatives. The Interim Budget 2024-25 had initially allocated ₹12,19,783 crore towards the devolution of taxes to states.

With this latest release, the total amount devolved to states for the fiscal year 2024-25 reaches ₹2,79,500 crore as of June 10, 2024. Currently, 41% of taxes collected by the Centre is devolved in 14 instalments among states during a fiscal year.

Also Read: Income Tax Returns — how to download and read Form 26AS for filing

Meanwhile, Congress slammed the Centre after it authorised the release of tax devolution to states for June and said this is "third-rate PR" trying to pass off what is legitimately due to states as some "prasad" being distributed.

Congress general secretary Jairam Ramesh said, "The finance ministry has just announced what is being billed as a major tax devolution to states. Undoubtedly this has been done at the behest of the 'one-third' PM."

"Tax devolutions to states are no special favours being done by men of non-biological origin. They are Constitutional entitlements determined by the finance commission," Ramesh said in a post on X. "This is third-rate PR trying to pass off what is legitimately due to states as some prasad being distributed," he said.