Centre releases Rs 1.09 lakh crore additional tax devolution to states
The Finance Ministry released the funds on Saturday to help states accelerate capital spending and meet welfare expenditure ahead of the festive season.
The Union Government released an additional Rs 1,09,019 crore in tax devolution to state governments on Saturday, October 31, the Ministry of Finance said. This amount is over and above the regular monthly tax devolution.
The Finance Ministry stated that the allocation was made in view of the upcoming festive season. The funds are intended to help states accelerate capital spending and finance development and welfare-related expenditure.
This marks the second additional instalment released in the current 2026-27 financial year. On August 1, the government had previously released an advance instalment of Rs 1,09,019 crore to support capital and developmental expenditure.
Uttar Pradesh received the highest allocation of Rs 19,208 crore. Other major recipients include Bihar at Rs 10,845 crore, Madhya Pradesh at Rs 8,010 crore, West Bengal at Rs 7,866 crore, and Maharashtra at Rs 7,022 crore.
Rajasthan received Rs 6,460 crore, while Odisha, Andhra Pradesh, Karnataka, Tamil Nadu, and Gujarat received Rs 4,819 crore, Rs 4,597 crore, Rs 4,504 crore, Rs 4,466 crore, and Rs 4,094 crore respectively.
Under the framework following the 16th Finance Commission recommendations, states receive 41 per cent of the central tax divisible pool. The Union Budget 2026-27 estimated tax devolution to states at Rs 15.26 lakh crore.