BHUBANESWAR: The Centre on Friday released tax devolution of Rs 7,834.80 crore to Odisha to expedite capital spending, support state finances and spur economic development.
Odisha was among 28 states for which a total Rs 1,73,030 crore has been released as against the normal devolution of Rs 89,086 crore in December 2024.
According to the Ministry of Finance, a higher amount is being devolved this month to enable states to accelerate capital spending and finance their development and welfare-related expenditure. Uttar Pradesh has received the highest Rs 31,039 crore followed by Bihar Rs 17,403 crore, Madhya Pradesh Rs 13,582 crore, West Bengal Rs 13,017 crore, Maharashtra Rs 10,930 crore and Rajasthan Rs 10,426 crore.
In October, the Centre had released tax devolution of `8,068 crore for Odisha given the festive season. The amount included one advance installment in addition to the regular installment.
Odisha is expected to get around Rs 10,222 crore more this fiscal out of the divisible pool of central taxes as the Centre has marginally increased the devolution of taxes to states in 2024-25. The state’s portion in the shared tax is budgeted at Rs 56,473.74 crore in 2024-25 as compared to Rs 46,251.18 crore in 2023-24. The devolution to the state has increased from 1.38 per cent of gross tax revenue in 2023-24 to 1.47 per cent in 2024-25.
Chief Minister Mohan Charan Majhi thanked Prime Minister Narendra Modi and Finance minister Nirmala Sitharaman for the release of an advance installment to states, including Rs 7,834.80 crore for Odisha.