₹7,834.8 Crore sanctioned for Odisha as tax devolution

New Delhi: Odisha was granted ₹7,834.80 Crore today by the Central Government as the State’s share due to the tax devolution.

While announcing the State-wise distribution of net proceeds of Union Taxes and Duties for January, 2025, the Centre released tax devolution of ₹1,73,030 Crore to State Governments.

In December 2024, the devolution amount was ₹89,086 Crore.

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

In an X post, Odisha Chief Minister Mohan Charan Majhi thanked the Prime Minister and Union Finance Minister for allocation of the advance installment of ₹7,834.80 Crore.

Grateful to Hon’ble PM Shri @narendramodi Ji and the Union Minister for Finance Smt. @nsitharaman Ji for the release of an advance installment of ₹1,73,030 crore as tax devolution to state governments, including ₹7,834.80 crore allocated for Odisha. This timely support will… https://t.co/PEiTj5CoAs

— Mohan Charan Majhi (@MohanMOdisha) January 10, 2025

Tax devolution refers to the distribution of tax revenues between the Centre and States. It is a constitutional mechanism, through which the proceeds of certain taxes are allocated among the Union and the States in a fair and equitable manner. The decision is taken on the basis of the Finance Commission’s recommendations.

Uttar Pradesh received the highest amount of ₹31,039.84 Crore, followed by ₹17,403.36 Crore for Bihar and ₹13017.06 Crore for West Bengal.