Did the Centre Approve an Additional Rs 81,735 Crore for State Tax Devolution?
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Synopsis
Discover the Centre's recent approval of an additional Rs 81,735 crore for state tax devolution, aimed at fostering development and welfare. Finance Minister Nirmala Sitharaman emphasizes the importance of cooperative federalism in achieving a prosperous India by 2047. Learn how this funding will accelerate capital spending and support priority projects.
Key Takeaways
- The Centre has approved an additional Rs 81,735 crore for states.
- This funding supports cooperative federalism principles.
- It aims to boost development and welfare-related expenditures.
- India's GDP growth remains strong, at 6.5% for FY 2024-25.
- Investment in futuristic sciences is a priority for the government.
New Delhi, May 30 (NationPress) The Centre has sanctioned an extra installment of Rs 81,735 crore as tax devolution for state governments, set to be disbursed on June 2, according to Finance Minister Nirmala Sitharaman.
During her speech at the Lakshmipat Singhania-IIM, Lucknow National Leadership Awards in the national capital, FM Sitharaman stated that this release is in addition to the usual monthly installment of tax devolution amounting to Rs 81,735 crore, which is scheduled for release on June 10.
She highlighted that the additional devolution aligns with the principles of co-operative federalism and the vision of achieving a 'Viksit Bharat' by 2047, a goal that can be realized through 'Viksit States' as envisioned by Prime Minister Narendra Modi.
This extra funding will empower states to accelerate their capital expenditures, support development and welfare-related initiatives, and allocate resources for priority projects and schemes.
The Finance Minister also noted that India's industrial and manufacturing performance has been strong during the Q4 of FY 2024-25, showcasing a real GDP growth of 7.4 percent in that quarter alone.
“For the complete FY 2024-25, the real GDP growth stood at 6.5 percent. India continues to maintain its position as the fastest-growing economy for four consecutive years,” she remarked.
Furthermore, she emphasized that investments in science and technology remain a priority for India.
“PM Modi envisions futuristic sciences and aims to invest in them. We must adopt a forward-thinking approach, and the progress we are witnessing from such investments reassures me that with our industry leading the way, we will certainly achieve our 2047 goal of becoming a Viksit Bharat,” added the Finance Minister.
She affirmed that the country consistently demonstrates that “we have individuals excelling in their respective domains.”
“We are distinguishing ourselves, prompting the world to regard India with admiration. We are at a pivotal moment in India’s history where it is crucial to have faith in our nation's capabilities and a belief that we can achieve the goals set forth by PM Modi for all citizens,” FM Sitharaman asserted.
Point of View
It's clear that this additional funding reflects the Centre's commitment to empowering states through cooperative federalism. This approach is essential for sustainable development, ensuring that resources are allocated where they are most needed, ultimately contributing to a stronger national economy.
NationPress
26/07/2025
Frequently Asked Questions
What is the purpose of the Rs 81,735 crore tax devolution?
The funding is aimed at enabling states to enhance their capital expenditures and finance development and welfare projects.
When will the additional installment be released?
The additional installment will be released on June 2.
How does this relate to India's growth?
This initiative aligns with India's goals for cooperative federalism and aims to support the vision of a developed India by 2047.
