Centre approves additional instalment of ₹81,735 crore as tax devolution to states

New Delhi: The Centre on Friday cleared an additional instalment of ₹81,735 crore as tax devolution to state governments, the ministry of finance said on Friday.

The amount will be released on 2 June, over and above the regular monthly instalment of ₹81,735 crore due on 10 June.

The move underscores the Centre’s commitment to cooperative federalism and supports the vision of a ‘Viksit Bharat’ (developed India) by 2047, according to the ministry.

This goal, as laid out by Prime Minister Narendra Modi, hinges on building strong, self-reliant states.

The additional funds will enable states to accelerate capital spending, finance key development and welfare programmes, and allocate resources to high-priority projects, the ministry said.

By advancing this supplementary devolution, the Centre seeks to strengthen the fiscal capacity of states at a crucial juncture of economic growth and infrastructure push, it added.

With a combined outlay of over ₹1.63 trillion in June alone, this twin release marks a significant step in enhancing state-level public investment and ensuring timely delivery of government schemes.

Also Read: India’s FY25 fiscal deficit hits ₹15.77 trillion, exceeds target

Developed India @2047

The Indian government’s vision of Viksit Bharat by 2047 aims to build a strong, inclusive, and sustainable economy by the nation’s centenary of independence.

It focuses on high-quality growth, world-class infrastructure, empowered states, and social equity. With an emphasis on innovation, green development, and institutional reform, the goal is to transform India into a globally competitive and resilient nation.

GDP grows 6.5% in FY25

India’s GDP grew 6.5% in FY25, supported by a strong 7.4% expansion in the January–March quarter, provisional data released Friday by the ministry of statistics and programme implementation showed.

Both figures mark a moderation from the previous year. FY24’s Q4 growth stood at 7.8%, while the full-year growth was revised to 9.2%.

Also read: Behind strong Q4 GDP growth is only mild uptick in economic activity 

Despite global headwinds, the economy was buoyed by robust performance across key sectors—agriculture, manufacturing, construction, mining, and services—all of which posted higher output in FY25 compared to the previous year.