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Centre transfers Rs 8.83 lakh crore to states in FY22, exceeds revised estimate by 19%

The finance ministry said it was able to release more funds following "close monitoring" of receipts from taxes and duties.

March 31, 2022 / 07:30 PM IST
Finance Ministry (Image: PTI)

Finance Ministry (Image: PTI)

The central government transferred a total of Rs 8.83 lakh crore to state governments in FY22, exceeding the revised estimate by Rs 1.38 lakh crore, or 18.6 percent.

The 2022 Budget had already raised the devolution of states share in taxes to Rs 7.45 lakh crore from Rs 6.66 lakh crore for the current financial year.

The finance ministry said in a series of tweets on March 31 that the "unprecedented" transfer of greater funds to states was a show of "substantial support" from the Centre to ensure state governments have "all the financial resources required to fund their development programmes".

The total amount includes the release of a net Rs 43,168 crore to state governments to settle dues that were payable from 1996-97 to 2017-18, the finance ministry added.