The Union Government on Friday (May 30) has approved an advance release of ₹81,735 crore as an additional instalment of tax devolution to state governments, to be disbursed on June 2, 2025. This is over and above the regular monthly devolution of an equal amount scheduled for June 10.”The Union Government has approved an additional instalment of ₹81,735 crore as Tax Devolution to the State Governments, which will be released on June 2, 2025,” the finance ministry said in a statement.
The Ministry of Finance stated that the early release is aimed at supporting states in accelerating capital expenditure and meeting development and welfare-related obligations. The move is also expected to provide additional liquidity for priority projects and schemes at the state level.
Also Read: India’s fiscal deficit at 4.8% of GDP in FY25″The additional instalment of devolution will enable the states to speed up their Capital spending, finance their development and welfare-related expenditure and also make available resources for priority projects/schemes of the states,” the ministry said.Currently, 41% of taxes collected by the Centre are devolved in instalments among states during a fiscal year.Also Read: India’s Q4 GDP grows 7.4%, FY25 growth forecast unchanged at 6.5%
