New Delhi, Jan 10 (PTI) The Centre on Friday released tax devolution of Rs 1.73 lakh crore to the state governments to accelerate capital expenditure and finance welfare activities.

"A higher amount is being devolved this month to enable states to accelerate capital spending and finance their development and welfare-related expenditures," the finance ministry said in a statement.

The Union government has released tax devolution of Rs 1,73,030 crore to state governments on Friday, as against the devolution of Rs 89,086 crore in December 2024, the ministry added.

Currently, 41 per cent of taxes collected by the Centre is devolved in instalments among states during a fiscal year. PTI JD JD SHW

Tax devolution increases to boost state capital spending and finance welfare initiatives through larger instalment transfers. Centre released a larger monthly instalment of central tax revenues to states to accelerate capital expenditure and finance welfare-related spending under the established mechanism that apportions 41 per cent of net central tax collections to states in instalments during the fiscal year.