“Modi Govt Transfers Crores to States in First Cabinet Meeting”

After the formation of the NDA government, PM Modi took several major decisions in the first cabinet meeting. The Ministry of Finance also transferred the amount of tax devolution to the states. Finance Minister Nirmala Sitharaman immediately after taking charge, announced to release a total of 1,39,750 crore rupees of tax devolution to all states. Uttar Pradesh received the most money, with 25,069 crore rupees.

Bihar, led by coalition ally Nitish Kumar, ranked second, receiving 14,056.12 crore rupees. Madhya Pradesh was the third-highest recipient, receiving 10,970.44 crore rupees, while Chhattisgarh received 4,761 crore rupees. It is noteworthy that the interim budget for 2024-25 has provisioned 12,19,783 crore rupees for the transfer of taxes to the states. Besides regular releases of devolution amounts, an additional instalment will be issued for speeding up development and capital expenditure by state governments. Considering this, the total amount transferred to the states on Monday, June 10, including the additional installment for the financial year 2024-25, is 2,79,500 crore rupees.

The Ministry of Finance has allocated the lowest amount of tax devolution to the small state of Sikkim. Sikkim received 542 crore rupees, while Goa received 539 crore rupees. Mizoram received 698 crore rupees, and Nagaland received 795 crore rupees. Among the 28 states included in this allocation, Jharkhand received 4621.58 crore rupees, Karnataka received 5096.72 crore rupees, Punjab received 2525.32 crore rupees, Himachal Pradesh received 1159.92 crore rupees, and Kerala received 2690.20 crore rupees.

Additionally, Manipur and Meghalaya received 1000.60 and 1071.90 crore rupees respectively. As for other states, West Bengal received 10513.46 crore rupees, Maharashtra received 8828.08 crore rupees, Rajasthan received 8421.38 crore rupees, Odisha received 6327.92 crore rupees, Tamil Nadu received 5700.44 crore rupees, Andhra Pradesh received 5655.72 crore rupees, and Gujarat received 4860.56 crore rupees.