Centre releases Rs 37,420 cr as 1st instalment of devolution
New Delhi: The government today said it has released over Rs 37,420 crore to states for 2015-16 as the first instalment of devolution as per the 14th Finance Commission recommendations, with Uttar Pradesh getting the highest share.
“The Government of India has released more than Rs 37,420 crore to all the states for financial year 2015-16 as the first instalment of devolution as per the 14th Finance Commission (FFC),” a Finance Ministry statement said.
The state which got the highest share is Uttar Pradesh at Rs 6,735.81 crore. Bihar got Rs 3,624.37 crore, followed by Madhya Pradesh at Rs 2,835.75 crore, West Bengal at Rs 2,746.91 crore and Maharashtra at Rs 2,075.59 crore.
States which got the least fund include Sikkim at 137.46 crore, Goa Rs 141.51 crore, Mizoram Rs 172.40 crore, Nagaland Rs 186.68 crore and Manipur Rs 231.27 crore.
Earlier this year, the 14th Finance Commission had recommended a record 10 per cent increase in the states’ share in the Union taxes to 42 per cent, which had been accepted by the Centre and will give the states an additional Rs 1.78 lakh crore in 2015-16.
The report of the Commission, headed by former RBI Governor Y V Reddy, also recommended a grants-in-aid of Rs 48,906 crore for 11 revenue deficit states, including Andhra Pradesh post division, West Bengal and Jammu and Kashmir, for 2015-16. For the period up to 2020, it will be over Rs 1.94 lakh crore.
The total devolution to the states in 2015-16 will be Rs 5.26 lakh crore, as against Rs 3.48 lakh crore in 2014-15, representing an increase of Rs 1.78 lakh crore. The total devolution to states during the five-year period up to 2019-20 will be Rs 39.48 lakh crore.