The Centre has given its approval for the release of two installments of tax devolution to the states, amounting to ₹1.42 lakh crore. This move is aimed at empowering the states to fund various social welfare and infrastructure development schemes. The release of this amount is in addition to another installment of ₹71,061 crore that was made on February 12. Uttar Pradesh will receive the highest amount of ₹25,495 crore, followed by Bihar with ₹14,295 crore, Madhya Pradesh with ₹11,157 crore, and other states. The latest devolution will help the states maintain their pace of expenditure leading up to the general elections, which are expected to be held in April-May. According to the current framework, 41% of the taxes collected by the Centre are shared with the states, usually in 14 installments during a financial year. The allocation of these funds to the states is based on a predefined formula decided by the Finance Commission, taking into account factors such as population, area, and fiscal capacity.