GUWAHATI: The start of Prime Minister Narendra Modi’s third term has brought significant financial relief to the Northeast.
The Finance Ministry has announced the release of an ₹11,382.74 crore instalment of tax devolution to the seven states in the region.
The Ministry released a total of ₹1,39,750 crore as part of the tax devolution instalment for states across the country.
Within the Northeast, Assam received the largest share, amounting to ₹4,371.38 crore, followed by Arunachal Pradesh with ₹2,455.44 crore.
Given its size and population, Assam’s allocation was the highest among the Northeastern states.
Meghalaya received the third-largest amount in the region, securing ₹1,071.90 crore.
This was followed by Manipur with ₹1,000.60 crore, Tripura with ₹989.44 crore, Nagaland with ₹795.20 crore, and Mizoram with ₹698.78 crore.
This substantial release of funds from the tax devolution is expected to enable state governments to accelerate development projects and capital spending, addressing regional infrastructure and development needs effectively.
On a national scale, Uttar Pradesh received the highest allocation, with ₹25,069.88 crore. Bihar followed with ₹14,056.12 crore, and Madhya Pradesh secured the third spot with ₹10,970.44 crore.
The Interim Budget for 2024-25 had earmarked a total of ₹12,19,783 crore for the devolution of taxes to states.
With this latest release, the total amount devolved to states for the fiscal year 2024-25 has reached ₹2,79,500 crore as of June 10, 2024.
This strategic financial distribution aims to ensure balanced economic development across all states, with particular attention to the needs of the Northeastern region, underscoring the government’s commitment to regional equity and development.
Tax devolution entails the equitable distribution of tax revenues between the central government and state governments.
This constitutional mechanism ensures a fair allocation of proceeds from specific taxes among the Union and the states.
