Centre releases Rs37,420 crore as first instalment of tax devolution1 min read . Updated: 05 Apr 2015, 08:28 PM IST
Uttar Pradesh received the highest share at `6,735.81 crore; Bihar got `3,624.37 crore
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.