Centre okays additional instalment of Rs 81,735 crore as tax devolution to the state govts

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ET OnlineLast Updated: May 30, 2025, 08:37:00 PM IST

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The Centre has approved an additional tax devolution of Rs 81,735 crore to State Governments, scheduled for release on June 2, 2025. This move aims to bolster cooperative federalism and facilitate the vision of 'Viksit Bharat' by 2047 through empowered states. The increased funds will enable states to accelerate capital spending, finance development, and prioritize key projects.

The Centre on Friday said that it has approved an additional instalment of Rs 81,735 crore as tax devolution to the state governments, which will be released on June 2, 2025.

"The additional instalment of devolution to States is in line with the principle of co-operative federalism and the aim of becoming 'Viksit Bharat' by 2047, which can be realized through 'Viksit States' as envisioned by Hon'ble Prime Minister Shri @narendramodi," said the Finance Minister in its statement.

The Finance Ministry added that the additional instalment of devolution will enable the States to speed up their capital spending, finance their development and welfare-related expenditure and also make available resources for priority projects/schemes of the States.

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