UNION BUDGET 2025: India's state governments will receive Rs 14 lakh 22 thousand crores through union tax devolution
Union Budget For Indian States: The Government of India is going to give Rs 14 lakh 22 thousand 444 crores to the state governments in the year 2025-26. This amount is in the form of a share in central taxes.
State’s Share in Union Taxes: Nirmala Sitharaman has given something to everyone in her eighth budget. But she has opened the mouth of Kuber's treasury towards the state governments. The Government of India is going to give Rs 14 lakh 22 thousand 444 crores to the state governments in the year 2025-26. This amount is in the form of a share in central taxes. In this item, the Government of India is going to give one lakh 37 thousand 459 crores more to the states as compared to last year. In 2024-25, the states were given Rs 12 lakh 86 thousand 885 crore by the Government of India under central taxes.
The state governments will be able to spend this amount arbitrarily according to their needs. Because this amount is not given for spending on any specific development project or any specific item. Nor is it any kind of loan. It is entirely the income of the state government, there is no restriction of the state government or any other agency on it to spend it in any particular way.
Many states in crisis, will get relief.
Many states of the country are facing an economic crisis. Just a few months ago, the Himachal Pradesh government was facing the crisis of paying salaries to its employees. Many other states are also in a similar situation. In such a situation, the treasury of the states will get strength on the basis of the huge amount given by the Government of India. Now in a few days, the process of making a budget for 2025-26 will start in the states as well. Once the Government of India fixes the amount for the states, it will be easier for them to make a budget for their states to fulfill their dreams of employment, development, and prosperity.
This is how the share in central taxes is decided.
The agencies of the Government of India also collect some other taxes including corporation tax, income tax, central GST, customs, union excise duty, and service tax. A part of the income that the Government of India gets from these is given to the states. The formula for how much each state will get is decided by the Central Finance Commission.
