Karnataka receives ₹4,504 crore in additional tax devolution from Centre
The central government released over ₹1.09 lakh crore to state governments as a second additional instalment this financial year.
The Centre released an additional instalment of tax devolution to state governments on Saturday, with Karnataka receiving ₹4,504 crore, according to reports by The Hindu and Deccan Herald.
The Ministry of Finance disbursed a total of over ₹1.09 lakh crore through this special release. This amount is separate from the standard monthly tax devolution and represents the second such additional instalment provided during the current financial year.
Uttar Pradesh received the largest share at ₹19,208 crore, while Bihar was allocated ₹10,845 crore. Madhya Pradesh received ₹8,010 crore.
The Finance Ministry stated that the funds were released ahead of the upcoming festive season. The ministry said the move is intended to help states increase capital spending and fund development and welfare-related requirements.
Currently, 41 per cent of taxes collected by the Centre are shared among states through 14 instalments during a fiscal year.