Centre releases ₹2,597 crore to Kerala as ‘additional instalment’ of tax devolution to boost capital spending
The Indian Union government has released an additional ₹2,597 crore to Kerala as part of a broader tax devolution effort to boost state capital spending. This payment is separate from the routine monthly transfers and aims to strengthen state finances.
Why it matters
The move reflects the central government's fiscal strategy to accelerate developmental expenditure across Indian states.
The Union government said on Saturday (August 1) that it has released ₹2,597 crore to Kerala as an “additional instalment” of the tax devolution to the State to boost capital spending.
This money is in addition to the routine monthly devolution which will be released on August 10, according to the Union Finance Ministry.
Saturday’s decision, the Ministry said, is in line with the Centre’s commitment to strengthen the finances of States to accelerate their capital and developmental expenditure.
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