New Delhi, March 28: The Centre has transferred Rs 11,80,532 crore transferred to the state governments as devolution of share of taxes by the government of India in the 11 months of the current financial year up to February 2025, which is Rs 1,47,099 crore higher than the previous fiscal year (2023-24), according to figures released by the Finance Ministry on Friday.
The Centre devolves tax revenue to states in accordance with the recommendations of the Finance Commission. The sharing of revenue is aimed to enable states to step up capital spending and finance their development and welfare-related expenditures. The Government of India has received Rs 25,46,317 crore (80.9 per cent of corresponding RE 2024-25 of Total Receipts up to February, 2025 comprising Rs 20,15,634 crore Tax Revenue (Net to Centre), Rs 4,93,319 crore of Non-Tax Revenue and Rs 37,364 crore of Non-Debt Capital Receipts.
The total expenditure incurred by Government of India is Rs 38,93,169 crore (82.5 per cent of corresponding RE 2024-25), out of which Rs 30,81,282 crore is on Revenue Account and Rs 8,11,887 crore is on Capital Account. Out of the Total Revenue Expenditure, Rs 9,52,844 crore is on account of Interest Payments and Rs 3,63,005 crore is on account of Major Subsidies, the statement said.
The figures show that the fiscal deficit is under control as the country pursues a policy of financial consolidation to ensure stable growth while keeping inflation in check. Finance Minister Nirmala Sitharaman has kept the budget deficit target on a declining path to 4.4 per cent of GDP in 2025-26 from 4.8 per cent of GDP in 2024-25.
The net market borrowing for the budget has been fixed at Rs 11.54 crore while the rest of the funds will come from small savings schemes, the Finance Minister said while presenting the budget.
The Finance Ministry announced on Thursday that the Government will raise Rs 8 lakh crore from the bond market during the first half of 2025-26 (April-September), which is 54 per cent of the total market borrowing of Rs 14.82 lakh crore for the entire financial year announced in the Budget.
Out of this, Rs 10,000 crore will be raised through sovereign green bonds. The Centre plans its market borrowings in phased manner so that liquidity is not squeezed out for investments in the corporate sector which would hurt economic growth.
IANS