According to the Ministry of Finance, the Union government disbursed Rs 1,01,603 crore as an additional tax devolution to all states on October 1 in an effort to support welfare and development initiatives at the state level over the holiday season.
This advance release is in addition to the regular monthly distribution of Rs 81,735 crore, which is set for October 10.The additional monies are meant to assist states in strengthening their welfare programs and increasing capital expenditures during the current festival period, according to the Finance Ministry.
With Assam receiving the largest allocation of Rs 3,178 crore, the eight Northeastern states received a total of Rs 8,668 crore.
With Rs 1,785 crore, Arunachal Pradesh came next, while the remaining funds were:
1. Meghalaya – Rs 779 crore
2. Manipur – Rs 727 crore
3. Tripura – Rs 719 crore
4. Nagaland – Rs 578 crore
5. Mizoram – Rs 508 crore
6. Sikkim – Rs 394 crore
Assam Chief Minister Himanta Biswa Sarma responded to the news by thanking Union Finance Minister Nirmala Sitharaman and Prime Minister Narendra Modi for the prompt financial assistance.
We appreciate the Hon. Prime Minister Shri @narendramodi ji's release of Rs 3,178 crore as advance tax devolution during this holiday season.
We appreciate the Hon. Union Minister Smt. @nsitharaman ji for providing this prompt assistance, which would enable us to expedite our welfare initiatives," Sarma posted on social media.
Even yet, the 2025 advance devolution for Assam is less than the Rs 5,573 crore that was made available during the same time last year.
41% of the Union government's tax revenue is distributed to the states in recurring installments under India's fiscal federal system.
This method is in line with the national aim of creating a "Viksit Bharat" (Developed India) by 2047 and is a component of the larger objective of cooperative federalism.
