Centre Releases Additional ₹1.09 Lakh Crore Tax Devolution to States

# Centre Releases Additional ₹1.09 Lakh Crore Tax Devolution to States ### Why in News? The Union Finance Ministry released an additional **₹1,09,019 crore** as tax devolution to State governments, over and above the regular monthly instalment. ### What is tax devolution? - Tax devolution is the share of the Centre's divisible pool of taxes that is transferred to the States. - The current devolution share is **41%** of the divisible pool, based on the recommendation of the **15th Finance Commission**. - The additional release gives States more funds for development and other expenditure without waiting for the normal monthly instalment. ### Exam Connect - **Finance Commission** → constitutional body under **Article 280** - **15th Finance Commission** → recommended **41%** vertical devolution to States