Centre releases additional instalment of tax devolution of Rs 1.01 lakh cr to state govts

New Delhi: The Centre has released an additional instalment of tax devolution of Rs 1,01,603 crore to state governments ahead of the upcoming festival season.

In view of the upcoming festive season and to enable states to accelerate capital spending and finance their development/welfare-related expenditure, the Union government has released an additional tax devolution of Rs 1,01,603 crore to state governments on October 1, 2025, the finance ministry said in a statement on Wednesday.

This is in addition to the normal monthly devolution Rs 81,735 crore due to be released on October 10, 2025, it said.


The additional instalment of devolution to states is in line with the principle of cooperative federalism and the aim of becoming 'Viksit Bharat' by 2047.

Currently, 41 per cent of taxes collected by the Centre is devolved in instalments among states during a fiscal year.