Transfer of tax revenue from Centre to states increases by over Rs 2.25 lakh crore in 2023-24

The Centre has transferred Rs 10,33,433 crore to State Governments as devolution of share of taxes during the 11 months of the current financial year up to February 2024, which is Rs 2,25,345 crore higher than the previous year. According to the figures released by the Finance Ministry, the Government of India has received Rs 22,45,922 crore till February 2024, comprising various sources of revenue.

As per the monthly review of accounts, the Government of India has received Rs 18,49,452 crore as Tax Revenue, Rs 3,60,330 crore as Non-Tax Revenue, and Rs 36,140 crore as Non-Debt Capital Receipts. The Non-Debt Capital Receipts include recovery of loans amounting to Rs 23,480 crore and miscellaneous capital receipts of Rs 12,660 crore.

The total expenditure incurred by the Government of India is Rs 37,47,287 crore, with Rs 29,41,674 crore spent on Revenue Account and Rs 8,05,613 crore on Capital Account. A significant portion of the revenue expenditure, Rs 8,80,788 crore, is allocated for interest payments while Rs 3,60,997 crore is designated for major subsidies.

These financial figures provide an insight into the economic transactions between the Centre and State Governments, showcasing an increase in the devolution of taxes and overall revenue receipts compared to the previous year. The allocation and utilization of funds for various expenditures highlight the government’s financial management strategies towards achieving its fiscal objectives.