On January 10, the Central government announced the release of Rs 1,73,030 crore in tax devolution to state governments, a significant increase from the Rs 89,086 crore allocated in December 2024. This substantial funding aims to boost capital spending and support development and welfare initiatives across the states.
Among the northeastern states, Assam received the largest share, with an installment of Rs 5,412.38 crore, followed by Arunachal Pradesh, which was allocated Rs 3,040.14 crore. Other northeastern allocations included Meghalaya with Rs 1,327.13 crore, Manipur at Rs 1,238.90 crore, Tripura receiving Rs 1,225.04 crore, Nagaland with Rs 984.54 crore, and Sikkim allotted Rs 671.35 crore.
The distribution of funds prompted appreciation from Arunachal Pradeshâs Chief Minister, Pema Khandu, who thanked Prime Minister Narendra Modi via his official social media platform. CM Khandu expressed that this financial boost would enhance the stateâs fiscal capacity, facilitating timely infrastructure projects and strengthening welfare schemes for marginalized communities. He emphasized that the assistance underscores the central governmentâs commitment to the comprehensive development of Arunachal Pradesh and the broader northeastern region.
Among all Indian states, Uttar Pradesh was the largest beneficiary with an allocation of Rs 31,039.84 crore, while Goa received the smallest allocation of Rs 667.91 crore.
These fund allocations are part of a broader strategy to promote regional development and economic growth, especially in historically underfunded areas like the northeast. The increased financial support is expected to empower states to effectively implement key projects and welfare schemes, thereby enhancing the overall prosperity of their regions.
