Guwahati: In a move aimed at boosting state-level development and welfare efforts during the festive season, the Union government released Rs 1,01,603 crore as an additional tax devolution to all states on October 1, according to the Ministry of Finance.
This advance release supplements the regular monthly devolution of Rs 81,735 crore, scheduled for October 10, The Assam Tribune reported.
The Finance Ministry stated that the extra funds are intended to help states increase capital expenditure and strengthen welfare schemes during the ongoing festival period.
Among the states, eight Northeastern states collectively received Rs 8,668 crore, with Assam securing the highest allocation of Rs 3,178 crore. Arunachal Pradesh followed with Rs 1,785 crore, while the other allocations were:
- Meghalaya – Rs 779 crore
- Manipur – Rs 727 crore
- Tripura – Rs 719 crore
- Nagaland – Rs 578 crore
- Mizoram – Rs 508 crore
- Sikkim – Rs 394 crore
Reacting to the announcement, Assam Chief Minister Himanta Biswa Sarma thanked Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for the timely financial support.
“Grateful to Hon’ble Prime Minister Shri @narendramodi ji for releasing Rs 3,178 crore as advance tax devolution this festive season. Thanks to Hon’ble Union Minister Smt. @nsitharaman ji for facilitating this timely support, which will help us speed up our welfare efforts,” Sarma wrote on social media.
Grateful to Adarniya Shri @AmitShah ji for approving 3 vital initiatives to enhance Assam’s flood resilience.
Under Adarniya Shri @narendramodi ji’s leadership, projects of ?2,000+ cr, largely Centre-funded, will build sustainable infrastructure for lasting flood management. pic.twitter.com/8S1moWp3m7
— Himanta Biswa Sarma (@himantabiswa) October 2, 2025
Despite this, the 2025 advance devolution for Assam falls short compared to Rs 5,573 crore released during the same period last year.
Under India’s fiscal federal structure, the Union government devolves 41% of its tax revenue to the states in periodic instalments. This mechanism forms part of the broader goal of cooperative federalism and aligns with the national vision of building a “Viksit Bharat” (Developed India) by 2047.
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