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.
Key Details
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