In a significant financial move, the Union government has sanctioned an additional ₹81,735 crore as tax devolution to various state governments. According to a press release by the Ministry of Finance on Friday, this supplementary disbursement will be made on 2 June 2025.
This fresh allocation comes on top of the regular monthly tax devolution of ₹81,735 crore, which is already scheduled for 10 June 2025. With this twin disbursal, states are set to receive a total of over ₹1.63 lakh crore within a short time span.
The Ministry highlighted that this extra instalment aims to empower states to step up capital investments, support key development and welfare initiatives, and ensure adequate funding for high-priority schemes and projects.
By fast-tracking the flow of funds, the government hopes to stimulate state-level infrastructure growth and reinforce critical public service delivery systems.
This initiative is aligned with the Union government’s push for cooperative federalism and its broader vision for transforming India into a “Viksit Bharat” (Developed India) by the year 2047. The Finance Ministry underscored that achieving this national goal is closely linked to enabling “Viksit States”, as envisioned by Prime Minister Narendra Modi.
A statement on X (formerly Twitter) by the Ministry reiterated this approach, emphasizing fiscal decentralization as a key lever for balanced and inclusive national growth.
Read Also: