New Delhi: The central government on Wednesday released an additional tax devolution to states worth ₹ 1.01 trillion ahead of the festive season to finance their welfare and development expenditure.

This devolution will be in addition to the scheduled devolution on 10 October and will enable states to accelerate capital spending, the Union finance ministry said in a statement late on Wednesday.

Tax devolution from the central government is used by states to finance their development and welfare initiatives. These funds are released periodically and can be increased to allow state governments to manage economic issues.

The tax devolution is based on the recommendation from the Finance Commission, a constitutional body formed every five years to give economic and financial recommendatio

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