📷 Image: Wikimedia Commons / Ministry of Finance of India
Politics
Centre Announces Extra ₹1.09 Lakh Crore Tax Devolution to States
✍️ Asianet Newsable
🗓 31 Oct 2026, 10:46 PM
👁 17
The Indian government has released an additional ₹1.09 lakh crore in tax devolution to states, a move aimed at boosting state finances.
The Ministry of Finance announced today that the central government will release an extra ₹1.09 lakh crore in tax devolution to states. This additional amount is part of the fiscal policy framework designed to enhance the financial autonomy of state governments.
Tax devolution refers to the transfer of tax revenues from the central to state governments. By increasing the devolution, the centre aims to provide states with greater resources to meet their developmental and welfare commitments.
The additional funds are expected to support a range of state‑level initiatives, from infrastructure projects to social welfare schemes. Analysts suggest that the boost could help states meet their budgetary targets without raising taxes.
The announcement comes ahead of the annual fiscal planning cycle, and state finance ministries are preparing to integrate the new funds into their upcoming budgets.
Tax devolution refers to the transfer of tax revenues from the central to state governments. By increasing the devolution, the centre aims to provide states with greater resources to meet their developmental and welfare commitments.
The additional funds are expected to support a range of state‑level initiatives, from infrastructure projects to social welfare schemes. Analysts suggest that the boost could help states meet their budgetary targets without raising taxes.
The announcement comes ahead of the annual fiscal planning cycle, and state finance ministries are preparing to integrate the new funds into their upcoming budgets.