Image of Assam Chief Minister Himanta Biswa Sarma during a discussion with Finance Minister Nirmala Sitaraman 
Top Headlines

Centre Releases ₹8,668-Cr Tax Devolution to Northeast; Assam Gets Highest Share at ₹3,178 Cr

Finance Ministry says advance release will boost capital spending, fund festive welfare initiatives.

Sentinel Digital Desk

Guwahati: In a major financial push ahead of the festive season, the Union government has released an additional tax devolution of ₹1,01,603 crore to all states, the Ministry of Finance announced on Tuesday.

Of this, the eight Northeastern states together received ₹8,668 crore as an advance instalment. Assam secured the largest allocation with ₹3,178 crore, followed by Arunachal Pradesh with ₹1,785 crore. Other allocations include Meghalaya (₹779 crore), Manipur (₹727 crore), Tripura (₹719 crore), Nagaland (₹578 crore), Mizoram (₹508 crore) and Sikkim (₹394 crore).

The Ministry said the move aims to enable states to step up capital expenditure and implement welfare programmes during the festive period. The release comes in addition to the monthly instalment of ₹81,735 crore scheduled for October 10.

Expressing gratitude, Assam Chief Minister Himanta Biswa Sarma thanked Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman, stating that the timely support would accelerate welfare and development efforts in the state.

“Grateful to Hon’ble Prime Minister Shri @narendramodi ji for releasing ₹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, this year’s advance allocation for Assam is notably lower than the ₹5,573 crore released in 2024.

Under India’s federal framework, 41% of the Centre’s net tax collections are devolved to states in instalments across the financial year. Officials noted that the disbursal underscores the Centre’s commitment to cooperative federalism and long-term development goals under the vision of Viksit Bharat 2047.