New Delhi: The Centre on Friday released ₹1.73 lakh crore to state governments, marking a significant increase from the ₹89,086 crore transfer in December 2024, an official statement said.
The move is expected to provide a much-needed stimulus to the economy, as state capital spending has a multiplier effect on driving growth. It is expected to support states in financing their development and welfare-related expenditures.
The increased devolution is also seen as a strategic step to support states in their efforts to accelerate infrastructure development and social welfare programmes.
Uttar Pradesh, Uttarakhand and Bihar have received the largest shares of funds, with allocations of ₹31,039.84 crore, ₹17,403.36 crore and ₹13,017.06 crore, respectively.
Content Source: economictimes.indiatimes.com