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Centre Releases Rs 72,961 Crore as Tax Devolution to States.

Economy & Business | Dated: 27 Dec 2025

The Central Government has released an additional installment of tax devolution amounting to Rs 72,961 crore to State Governments. This is in addition to the regular monthly devolution. The move aims to strengthen the fiscal capacity of states for financing various social welfare schemes and infrastructure projects.

🎯 Key Highlights:

  • Uttar Pradesh received the highest share (Rs 13,088 crore), followed by Bihar and Madhya Pradesh.
  • The distribution is based on the formula recommended by the 15th Finance Commission.
  • This timely release helps states in accelerating capital expenditure towards the end of the fiscal year.

💡 Other Important Facts:

  • Action: Tax Devolution Release.
  • Amount: Rs 72,961 Crore.
  • Top Beneficiary: Uttar Pradesh.

📚 Test Your Knowledge:

Which state received the highest share in the recent tax devolution installment of Rs 72,961 crore released by the Centre?

Correct Answer: Uttar Pradesh

🚀 Quick Recap:

About Finance Commission

  • 16th FC Chairman – Arvind Panagariya
  • Article – 280