Centre Transfers Over Rs 4.28 Lakh Crore As Tax Revenue To States

2025-08-29 08:30:26

(MENAFN- IANS) New Delhi, Aug 29 (IANS) The Central government has received Rs 10,95,209 crore from April to July of the current financial year, which comprises 31.3 per cent of the corresponding budget estimates (BE) for 2025-26, according to data released by the Finance Ministry on Friday.

Of this, a sum of Rs 6,61,812 crore constitutes net tax revenue to the Centre, Rs 4,03,608 crore is non-tax revenue, and Rs 29,789 crore is part of non-debt capital receipts.

The Centre has transferred Rs 4,28,544 crore to state governments as devolution of share of taxes during this period, which is Rs 61,914 crore higher than the previous year, the Finance Ministry said.

Total Expenditure incurred by the Centre during this period is Rs 15,63,625 crore, which constitutes 30.9 per cent of the corresponding BE 2025-26. Out of this total amount, Rs 12,16,699 crore is on the revenue account and Rs 3,46,926 crore is on the capital account, which is spent on large infrastructure projects.

Interest payments make up Rs 4,46,690 crore of the total revenue expenditure, while major subsidies account for Rs 1,13,592 crore.

The government's capital expenditure on big-ticket infrastructure projects in the highways, railways, ports and power sectors has crossed Rs 3.5 lakh crore compared to Rs 2.6 lakh crore a year ago. This augurs well for the economy as these infrastructure projects push up the growth rate and have a multiplier effect on creating more jobs and incomes.

The government's fiscal deficit is also well under control at 29.9 per cent of the budget estimate fixed for the full fiscal year 2025-26.

A declining fiscal deficit reflects the strengthening of the fundamentals of the economy and paves the way for growth with price stability. It leads to a reduction in borrowing by the government, thus leaving more funds in the banking sector for lending to corporates and consumers, which leads to higher economic growth. A low fiscal deficit also helps to keep inflation in check.

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