The third installment of tax devolution was released by the Centre to states in June 2021. This release involved the transfer of ₹1.18 lakh crore to the states. Here are some key points about this development:

• The transfer of funds was done as per the recommendations of the 15th Finance Commission, along with the approval of the Union Cabinet.
• The funds are to be used by the states for various purposes such as improving their infrastructure, providing better healthcare, and enhancing their education system.
• The release of funds is seen as a positive move by the Centre, given the economic impact of the Covid-19 pandemic on the states' finances.
• The third installment of tax devolution follows the earlier releases made in February and May 2021, which amounted to ₹75,000 crore and ₹44,000 crore, respectively.
• The entire devolution of funds for the year 2021-22 is estimated to be ₹6.19 lakh crore.

This release of funds is expected to provide much-needed relief to the states as they continue to grapple with the economic challenges posed by the pandemic.