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INTERIM BUDGET ALLOCATES RS 22.7 LAKH CRORE FOR STATES AND UNION TERRITORIES
February 03, 2024
|The Daily Guardian
On February 1, the Interim Budget 2024 was introduced, outlining that the central government aims to transfer Rs 22,74,541 crore to states and union territories in the fiscal year 202425. This reflects an 8.4% increase from the revised estimates of 2023-24.
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The transfer to states encompasses the devolution of Rs 12,19,783 crore from the divisible pool of central taxes, grants totalling Rs 8,90,858 crore, and special loans amounting to Rs 1,30,000 crore earmarked for capital expenditure.
Finance Minister Nirmala Sitharaman presented the Interim Budget for 2024-25 in Parliament on Thursday, forecasting the devolution of taxes to states at 12.20 trillion rupees, indicating a 10.4% increase compared to the previous year.
In the Budget projection for 2024-25, a 5.7% yearon-year decrease is anticipated in the transfer of Finance Commission grants to states, amounting to 1.32 trillion rupees. Conversely, other transfers are expected to rise by 7.1%, reaching 6.81 trillion rupees.
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