How Much Has the Centre Transferred to States?
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Synopsis
The Central government has made a significant fiscal move by transferring over Rs 4.28 lakh crore to states as tax revenue, marking an increase from last year. This article dives into how these funds are impacting state economies and contributing to national growth.
Key Takeaways
- Rs 10,95,209 crore received by the Centre from April to July.
- Rs 4,28,544 crore transferred to states as tax revenue.
- Total expenditure of Rs 15,63,625 crore was incurred by the Centre.
- Capital expenditure on infrastructure exceeded Rs 3.5 lakh crore.
- The fiscal deficit is at 29.9 percent of the budget estimate.
New Delhi, Aug 29 (NationPress) The Central government has gathered Rs 10,95,209 crore from April to July in the current financial year, representing 31.3 percent of the respective budget estimates (BE) for 2025-26, as per the data disclosed by the Finance Ministry on Friday.
Out of this total, Rs 6,61,812 crore is net tax revenue for the Centre, Rs 4,03,608 crore is derived from non-tax revenue, and Rs 29,789 crore pertains to non-debt capital receipts.
The Centre has allocated Rs 4,28,544 crore to state governments as a share of tax devolution during this timeframe, which is Rs 61,914 crore more than the previous year, according to the Finance Ministry.
The total expenditure incurred by the Centre during this duration stands at Rs 15,63,625 crore, accounting for 30.9 percent of the corresponding BE for 2025-26. Within this figure, Rs 12,16,699 crore is allocated to revenue expenses while Rs 3,46,926 crore is invested in capital ventures, focusing on large-scale infrastructure projects.
Interest payments constitute Rs 4,46,690 crore of the total revenue expenditure, with major subsidies making up Rs 1,13,592 crore.
The government’s capital outlay on significant infrastructure initiatives in highways, railways, ports, and power sectors has exceeded Rs 3.5 lakh crore compared to Rs 2.6 lakh crore a year prior. This is a positive development for the economy, as these infrastructure endeavors elevate growth rates and create more jobs and income opportunities.
The fiscal deficit remains well-managed at 29.9 percent of the budget estimate set for the entire fiscal year of 2025-26.
A decreasing fiscal deficit indicates the strengthening of the economy’s fundamentals, setting a foundation for growth alongside price stability. It reduces government borrowing, thereby increasing available funds in the banking sector for lending to businesses and consumers, which in turn fosters economic expansion. A lower fiscal deficit also assists in curtailing inflation.
Point of View
The recent fiscal initiatives by the Central government reflect a commitment to balanced growth and responsible governance. The increase in tax revenue transfers to states underscores a collaborative approach to economic recovery and development.
NationPress
30/08/2025
Frequently Asked Questions
How much tax revenue has the Centre received?
The Centre has received Rs 10,95,209 crore from April to July of the current financial year.
What is the amount transferred to states?
The Centre has transferred Rs 4,28,544 crore to states as tax revenue.
What percentage of the budget estimates does the revenue represent?
This amount makes up 31.3 percent of the budget estimates for 2025-26.
How much has the capital expenditure increased?
The government’s capital expenditure has risen to over Rs 3.5 lakh crore compared to Rs 2.6 lakh crore last year.
What does a declining fiscal deficit indicate?
A declining fiscal deficit indicates stronger economic fundamentals and paves the way for growth while maintaining price stability.
