Tax Devolution
Govt to give states double instalment of INR 1.64 tln Jun as tax devolution
This story was originally published at 21:01 IST on 30 May 2025
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--Govt: To release INR 817.35 bln as extra devolution to states on Jun 2
--Govt: To release INR 817.35 bln as regular devolution to states on Jun 10
NEW DELHI – The Union government has approved an additional instalment of INR 817.35 billion as tax devolution to state governments, which will be released on Jun. 2, the finance ministry said Friday. This release is in addition to the regular monthly instalment of tax devolution worth INR 817.35 billion which will be released on Jun. 10, the ministry said in a post on X, formerly called Twitter.
"The additional instalment of devolution will enable states to speed up their capital spending, finance their development and welfare-related expenditure and also make available resources for priority projects or schemes of the states," the ministry said in the tweet.
In 2025-26 (Apr-Mar), the government aims to transfer INR 14.224 trillion to states as a share in taxes. In April, the government transferred INR 817.35 billion to states, as against INR 698.75 billion transferred in the year-ago period. The government has not detailed the amount to be shared with states as tax devolution for May. Data by the Controller General of Accounts for May – which will be released on Jun. 30 – will detail the amount the Centre transferred to states as tax devolution this month.
June's 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 realised through 'Viksit States' as envisioned by Prime Minister Narendra Modi," the post on X said.
The 15th Finance Commission has recommended sharing 41% of central taxes with states. Typically, the devolution is released to states in 14 equal instalments. End
Reported by Priyasmita Dutta
Edited by Deepshikha Bhardwaj
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