By Union Finance Minister

Copyright thehindubusinessline

In view of the upcoming festive season and to enable states to accelerate capital spending and finance their development and welfare-related expenditure, the Centre released an additional tax devolution of ₹1,01,603 crore to state governments on Wednesday.

This is in addition to normal monthly devolution due to be released on October 10, 2025, the Finance Ministry said in a release. The release gave a break up of the amount released to various states. Uttar Pradesh received the highest allocation at ₹18,227 crore, followed by Bihar with ₹10,219 crore and Madhya Pradesh with ₹7,976 crore. West Bengal has been allocated ₹644 crore, while Maharashtra and Rajasthan received ₹6,418 crore and ₹6,123 crore respectively.

The government has also implemented GST reforms which came into effect on September 22. The 56th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman has approved Next-Gen GST reforms, with focus on improving the lives of the common man and ensuring ease of doing business for all, including small traders and businessmen.

In his Independence Day address, Prime Minister Narendra Modi had announced-“The government will bring Next-Generation GST reforms, which will bring down tax burden on the common man. It will be a Diwali gift for you.” The reforms, he had said, would directly benefit the common man, farmers, MSMEs, women, youth, and middle-class families, while strengthening India’s long-term growth.

GST Council had recommended a comprehensive reform package that includes rate rationalization with a simplified two-slab structure (5% and 18%), sweeping rate reductions across sectors, with focus on common-man, labour-intensive Industries, farmers and agriculture, health, key drivers of the economy.

Published on October 2, 2025