Centre releases Rs 8,668-Cr tax devolution to Northeast; Assam tops with Rs 3,178-Cr

Guwahati/New Delhi, Oct 2: In a move to support states’ development and welfare initiatives during the festive season, the Union government on October 1 released an additional tax devolution of Rs 1,01,603 crore to all state governments, the Finance Ministry said.

Of this, the eight Northeastern states received Rs 8,668 crore as an advance release. Assam received the largest share at Rs 3,178 crore, followed by Arunachal Pradesh at Rs 1,785 crore. Other allocations included Meghalaya (Rs 779 crore), Manipur (Rs 727 crore), Tripura (Rs 719 crore), Nagaland (Rs 578 crore), Mizoram (Rs 508 crore) and Sikkim (Rs 394 crore).

The Ministry noted that this disbursal aims to enable states to step up capital expenditure and fund welfare programmes during the festival period.

It also noted that this advance comes in addition to the normal monthly instalment of Rs 81,735 crore due on October 10.

Assam Chief Minister Himanta Biswa Sarma expressed gratitude to Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman, noting that the timely release would accelerate the state’s welfare and development efforts.

“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 posted on social media.

However, the 2025 advance allocation is significantly lower than last year’s Rs 5,573 crore released to Assam.

Under the constitutional framework, 41% of the Centre’s tax collections are devolved to states in instalments during the fiscal year.

This distribution mechanism reflects the principles of cooperative federalism and supports India’s long-term vision of a “Viksit Bharat” by 2047.

With inputs from PTI