Centre gives states over one lakh crore rupees as extra tax funds for festive season

Fund Release

The Union government released an extra instalment of tax money totalling more than 1.09 trillion rupees to state governments on Saturday. The exact amount sent by the finance ministry is 1,09,019 crore rupees.

## Purpose

The ministry stated that this money is given because the festive season is coming up soon. It helps states speed up spending on big projects like buildings and roads, and also pays for welfare and development work.

Context

Usually, the Centre shares 41 percent of the taxes it collects with states by giving it in 14 parts across the financial year. This extra payment comes on top of the regular monthly share and marks the second time an extra amount has been given this year.