Union Government Boosts State Finances with Extra Rs 81,735 Crore

The Union Government approved an additional tax devolution of Rs 81,735 crore to states, set for release on June 2, 2025. This funding supports cooperative federalism and boosts capital spending, development, and welfare projects, aligning with India's vision for development by 2047.

The Union Government has sanctioned an additional installment of Rs 81,735 crore for tax devolution to state governments, the Ministry of Finance announced on Friday evening. Scheduled for release on June 2, 2025, this amount is in addition to the standard monthly installment of the same amount due on June 10.

This decision aligns with the cooperative federalism principle and aims to contribute to India's goal of becoming 'Viksit Bharat' by 2047, through the progress of 'Viksit States' as articulated by Prime Minister Narendra Modi. The Ministry emphasized that this financial reinforcement will accelerate state capital expenditures and support development and welfare projects.

Moreover, the additional funds will empower states to undertake priority projects and schemes, providing a vital boost to their economic growth and ensuring they have the necessary resources to finance key initiatives.

(With inputs from agencies.)