Centre releases additional tax devolution of Rs 1,01,603 crore to states in view of festival season
(source : ANI) ( Photo Credit : ani)
India’s central government has given states a big financial boost ahead of the festive season. On Wednesday, it released an extra Rs 1,01,603 crore in tax devolution to help states ramp up capital spending and cover development and welfare costs. This comes on top of the regular monthly payment scheduled for October 10, 2025, according to the Finance Ministry.
The funds aim to support state-level projects during the busy holiday period, including Diwali celebrations. Here’s how the money breaks down for key states: Uttar Pradesh gets the largest share at Rs 18,227 crore, followed by Bihar with Rs 10,219 crore and Madhya Pradesh at Rs 7,976 crore. West Bengal receives Rs 6,644 crore, while Maharashtra and Rajasthan get Rs 6,418 crore and Rs 6,123 crore, respectively.
At the same time, the government rolled out major GST reforms starting September 22 to make life easier for everyday people and businesses. The 56th GST Council meeting, led by Union Finance Minister Nirmala Sitharaman, greenlit these next-generation GST changes. They focus on cutting red tape for small traders and improving business operations across the board.
Prime Minister Narendra Modi first highlighted these reforms in his Independence Day speech, calling them a “Diwali gift” that would lower the tax burden on ordinary citizens. He said the updates would directly help common people, farmers, small and medium enterprises (MSMEs), women, youth, and middle-class families while fueling India’s long-term economic growth.
Following Modi’s vision, the GST Council approved a full package of reforms. This includes simplifying tax rates into a two-slab system—5% and 18%—and slashing rates in everyday sectors. The changes target labor-intensive industries, agriculture for farmers, health services, and other key areas that drive the economy. These GST reforms could make shopping and business cheaper and smoother for millions during the festive rush.
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