Extra instalment of tax devolution to be launched to States on June 2: Finance Ministry

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The federal government on Friday (Could 30, 2025) authorised a further instalment of ₹81,735 crore as tax devolution to States, which shall be launched on June 2.

This launch is along with the common month-to-month instalment of tax devolution of ₹81,735 crore, which shall be launched on June 10, 2025.

“The Union Authorities has authorised a further instalment of ₹81,735 crore as Tax Devolution to the State Governments, which shall be launched on June 2, 2025,” the Finance Ministry mentioned in an announcement.

The extra instalment of devolution to States is consistent with the precept of cooperative federalism and the purpose of turning into ‘Viksit Bharat’ by 2047, it added.

“The extra instalment of devolution will allow the States to hurry up their Capital spending, finance their growth and welfare-related expenditure and in addition make out there assets for precedence initiatives/schemes of the States,” the Ministry mentioned.

At present, 41% of taxes collected by the Centre is devolved in instalments amongst States throughout a fiscal yr.