Odisha Receives ₹8,068 Crore as Part of Centre’s ₹1.78 Lakh Crore Tax Devolution

Bhubaneswar: The Central government has released Rs 1,78,173 crore as tax devolution to states, including Rs 8,068 crore for Odisha, to help boost development and capital expenditure ahead of the festive season.

This release includes an additional advance installment along with the regular installment for October, according to a statement from the Ministry of Finance.

Typically, monthly tax devolution amounts to Rs 89,086.50 crore, but this disbursement is nearly double to support states’ capital spending and welfare-related initiatives.

The largest allocations were made to Uttar Pradesh (Rs 31,962 crore), Bihar (Rs 17,921 crore), Madhya Pradesh (Rs 13,987 crore), Maharashtra (Rs 11,255 crore), West Bengal (Rs 13,404 crore) and Rajasthan (Rs 10,737 crore).

For the fiscal year 2024-25, the central government plans to transfer Rs 23,48,980 crore to states and union territories, marking an 11.9% increase over FY 2023-24. Devolution from the Centre’s tax revenue is projected to reach Rs 12,47,211 crore, a 10.4% rise from the previous fiscal year. In FY 2023-24, actual devolution exceeded budget estimates by Rs 1,08,046 crore, reflecting a 10.6% growth.