The Union government has approved an additional tax devolution of Rs 81,735 crore to states, in a move to bolster state finances on Friday. It will be released on June 2. This is in addition to the regularly scheduled monthly tax devolution of Rs 81,735 crore, which will be disbursed on June 10, 2025.
"The Union Government 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 finance ministry said in a statement.
The government stated that this extra allocation to states aligns with cooperative federalism and the 'Viksit Bharat' (Developed India) 2047 vision.
"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," the ministry said.
Currently, the central government shares 41% of the taxes it collects with the states in regular payments throughout the year.
(With Inputs From PTI)
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