Centre Releases Tax Devolution Funds to States

The Union Finance Ministry has announced a key financial measure to improve the cash availability of state governments ahead of the festive season. It has released ₹1.09 lakh crore as an advance instalment of tax devolution to states, over and above the regular allocation. The move is aimed at supporting states in meeting their financial requirements and maintaining the momentum of ongoing development activities.

Of the total amount, Andhra Pradesh has been allocated ₹4,597 crore, while Telangana will receive ₹2,370 crore. This is the second time in the current financial year that the Centre has released an additional instalment of tax devolution. The funds are expected to help state governments accelerate infrastructure development, implement welfare schemes and take forward other key initiatives. The decision is likely to provide financial support to states.