NEW DELHI: The Centre on Friday released tax devolution of Rs 1.73 lakh crore to the state governments to accelerate capital expenditure and finance welfare activities.

"A higher amount is being devolved this month to enable states to accelerate capital spending and finance their development and welfare-related expenditures," the finance ministry said in a statement.

The Union government has released tax devolution of Rs 1,73,030 crore to state governments on Friday, as against the devolution of Rs 89,086 crore in December 2024, the ministry added.

Currently, 41 per cent of taxes collected by the Centre is devolved in instalments among states during a fiscal year.