Archive · 2 Jun 2025
Government Approves Additional Tax Devolution to States
The Indian government is giving extra money to states through tax sharing.
An additional ₹81,735 crore will be released on June 2, 2025.
This is in addition to the usual monthly amount.
This aims to help states fund projects.
The extra money should help states spend more on projects.
It also gives states resources for important programs.
Currently, 41% of collected taxes are given to states.
The Central government approved an additional ₹81,735 crore as tax devolution to states.
This additional installment will be released on June 2, 2025.
This is in addition to the regular monthly installment of ₹81,735 crore, released on June 10.
The early release supports states in accelerating capital expenditure and welfare related obligations.
Currently, 41% of taxes collected by the Centre are devolved to states.
- Who
- The Union Government
- What
- Approval of additional tax devolution to states.
- When
- Additional funds released on June 2, 2025, regular installment on June 10.
- Where
- India
- Why
- The early release is aimed at supporting states in accelerating capital expenditure and meeting development and welfare-related obligations.
- Additional Tax Devolution Amount
- ₹81,735 crore
- Additional Devolution Release Date
- June 2, 2025
- Regular Monthly Devolution
- ₹81,735 crore
- Regular Devolution Release Date
- June 10, 2025
- Current Vertical Devolution
- 41%
Sources
Additional instalment of tax devolution to be released to states on June 2: Finance Ministry
Jharkhand govt urges finance commission to raise vertical devolution of central taxes to 50%
Centre okays additional Rs 81,735 crore as tax devolution to states: FM Sitharaman
