Government's Financial Boost: Rs 81,735 Crore Additional Tax Devolution to States

The Central Government has announced an additional Rs 81,735 crore for state tax devolution, supplementing the routine monthly instalment. This substantial financial boost is set for release on June 2, 2025.

This financial aid underscores the government's commitment to cooperative federalism, aiming for the ambitious goal of 'Viksit Bharat' by 2047. It recognizes the crucial role of state governments in fostering national development.

According to the finance ministry, the funds will empower states to intensify capital spending, finance development and welfare activities, and allocate resources to priority projects. This aligns with the policy that credits 41% of central tax collections back to the states.

(With inputs from agencies.)