The Northeastern region of India is poised to experience a significant influx of funds following the recent announcement by the Finance Ministry regarding tax devolution allocations. With Prime Minister Narendra Modi commencing his third term, Assam has emerged as the top beneficiary in the region, securing a substantial allocation of Rs 4,371.38 crore. This move underscores the government’s commitment to bolstering development and capital spending across states.
Under the tax devolution scheme, a total of Rs 1,39,750 crore has been earmarked for distribution among states nationwide. Assam’s sizable allocation reflects its status as the largest state in the Northeast, with a pressing need for infrastructural and developmental advancements. Arunachal Pradesh follows closely behind, securing the second-highest amount in the region with Rs 2,455.44 crore, highlighting the diverse developmental requirements of the Northeastern states.
Meghalaya, positioned as the third-highest recipient in the region, has been granted Rs 1,071.90 crore, surpassing even the traditionally sought-after tourism destination of Sikkim, which received Rs 542.22 crore. This allocation signifies a concerted effort to address the specific developmental needs of each state within the Northeast.
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Additionally, other states in the region have received substantial funds to fuel their development agendas. Manipur has been allocated Rs 1,000.60 crore, while Tripura and Nagaland have received Rs 989.44 crore and Rs 795.20 crore, respectively. Mizoram, too, has secured a significant allocation of Rs 698.78 crore, highlighting the comprehensive approach taken to foster growth and progress across the entire Northeastern region.
The injection of funds through tax devolution is expected to catalyze development initiatives and accelerate capital spending in these states. Addressing critical infrastructure gaps and promoting socio-economic progress are key priorities in the government’s agenda for the Northeast.
On a broader scale, Uttar Pradesh leads the nation in terms of allocation, receiving Rs 25,069.88 crore, followed by Bihar with Rs 14,056.12 crore and Madhya Pradesh with Rs 10,970.44 crore. These allocations reflect the government’s commitment to equitable distribution of resources and fostering balanced growth across states.
The Interim Budget 2024-25 had initially earmarked Rs 12,19,783 crore for tax devolution to states. With the recent release, the total devolved amount for the fiscal year 2024-25 has now reached Rs 2,79,500 crore as of June 10, 2024, signifying a significant step towards empowering states with the financial resources necessary for sustainable development and inclusive growth.
