Panaji: Goa has received Rs 667.91 crore as part of tax devolution as the central government released tax devolution of Rs 1,73,030 crore to states on Friday, as against the devolution of Rs 89,086 crore in December 2024.
A higher amount has been devolved to the state this month to enable states to accelerate capital spending and finance their development and welfare-related expenditures.
Tax devolution refers to the constitutional process of distributing tax revenues between the central and state governments.
The division is based on recommendations by the Finance Commission, which ensures the allocation is conducted fairly and equitably.
For the 2021-2026 period, the Finance Commission recommended maintaining the states’ share in central taxes at 41 per cent, consistent with the 2020-21 ratio. This is a reduction from the 42 per cent share recommended by the 14th Finance Commission for 2015-2020, with the adjustment accounting for the creation of the Union territories of Jammu and Kashmir and Ladakh.
The finance panel uses specific criteria to determine devolution amounts for each state. These include a 12.5 per cent weightage for demographic performance, 45 per cent for income, 15 per cent each for population and area, 10 per cent for forest and ecology, and 2.5 per cent for tax and fiscal efforts.
