New Delhi: The Union Government has decided to give states an extra amount of Rs 81,735 crore as tax devolution on June 2, 2025. This is an early payment and comes before the usual monthly devolution which is also Rs 81,735 crore and is scheduled for June 10.
The Ministry of Finance shared this news on Friday, May 30. The government said this early release of money will help states manage their expenses better. It will support them in speeding up capital expenditure, running development programmes, and meeting welfare goals.
States often face challenges in managing funds for big projects, welfare schemes, and urgent needs. With this additional money coming early, they will have more cash in hand to work faster and complete important tasks. This includes building roads, schools, hospitals, and improving basic services for people.
Every year, the central government shares a part of the tax it collects with all the states. At present, 41 per cent of the total central taxes are shared with states in parts during the financial year. This process is called tax devolution.
The Centre usually sends this money in regular instalments every month. But now, by releasing one extra instalment earlier, the government wants to help states stay on track with their spending plans and boost economic activities at the local level.
This step will also give more strength to state governments to handle their financial responsibilities smoothly and ensure key public projects move ahead without delay.
