Govt approves ₹81,735 crore additional tax devolution to states

Finance ministry says additional tax devolution to help states accelerate capital spending, fund welfare and development, and support priority schemes ahead of regular release

The government has approved an additional instalment of Rs 81,735 crore as tax devolution to the state governments, which will be released on 2 June 2025, a finance ministry statement said on Friday. This release is in addition to the regular monthly instalment of tax devolution of Rs 81,735 crore, which is scheduled for release on 10 June 2025.

 

The finance ministry said that the additional instalment of devolution will enable the states to accelerate their capital spending, finance development and welfare-related expenditure, and make available resources for priority projects and schemes of the states.

 

 

‘The additional instalment of devolution to states is in line with the principle of cooperative federalism and the aim of becoming “Viksit Bharat” by 2047, which can be realised through “Viksit States” as envisioned by Hon’ble Prime Minister Shri @narendramodi,’ the finance ministry said in a post on the social media platform X.