Home >politics >policy >Centre releases Rs37,420 crore as first instalment of tax devolution

New Delhi: The government on Sunday said it has released over 37,420 crore to states for 2015-16 as the first instalment of tax devolution as per the 14th Finance Commission recommendations, with Uttar Pradesh getting the highest share.

“The Government of India has released more than 37,420 crore to all the states for financial year 2015-16 as the first instalment of devolution as per the 14th Finance Commission (FFC)," a finance ministry statement said.

The state which got the highest share is Uttar Pradesh at 6,735.81 crore. Bihar got 3,624.37 crore, followed by Madhya Pradesh at 2,835.75 crore, West Bengal at 2,746.91 crore and Maharashtra at 2,075.59 crore.

States which got the least fund include Sikkim at 137.46 crore, Goa 141.51 crore, Mizoram 172.40 crore, Nagaland 186.68 crore and Manipur 231.27 crore. Earlier this year, the 14th Finance Commission had recommended a record 10% increase in the states’ share in the Union taxes to 42%, which had been accepted by the Centre and will give the states an additional 1.78 trillion in 2015-16.

The report of the Commission, headed by former Reserve Bank of India governor Y.V. Reddy, also recommended a grants-in-aid of 48,906 crore for 11 revenue deficit states, including Andhra Pradesh post division, West Bengal and Jammu and Kashmir, for 2015-16.

For the period up to 2020, it will be over 1.94 trillion. The total devolution to the states in 2015-16 will be 5.26 trillion, as against 3.48 trillion in 2014-15, representing an increase of 1.78 trillion. The total devolution to states during the five-year period up to 2019-20 will be 39.48 trillion.

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