Centre releases Rs 1.09 lakh crore tax devolution to states in advance
The monthly instalment was moved forward by five days to support state capital spending and welfare expenditure during the festive season.
The Union Government released a regular instalment of tax devolution amounting to Rs 1,09,019 crore to state governments on Thursday, November 5, 2026. According to The Hindu, the Finance Ministry advanced the payment, which is normally released on November 10, due to the upcoming festive season.
The Ministry of Finance stated that the advance release aims to enable states to accelerate capital spending and finance development and welfare-related expenditure. Currently, 41 per cent of taxes collected by the Centre are devolved to states in 14 instalments during a fiscal year.
Uttar Pradesh received the largest share of Rs 19,208 crore, followed by Bihar with Rs 10,845 crore and Madhya Pradesh with Rs 8,010 crore. Other significant allocations include Rs 7,866 crore for West Bengal, Rs 7,022 crore for Maharashtra, and Rs 6,460 crore for Rajasthan.
Additional disbursements were made to Odisha (Rs 4,819 crore), Andhra Pradesh (Rs 4,597 crore), Karnataka (Rs 4,504 crore), Tamil Nadu (Rs 4,466 crore), and Gujarat (Rs 4,094 crore). Jharkhand received Rs 3,660 crore, Assam Rs 3,552 crore, and Chhattisgarh Rs 3,602 crore.
Smaller amounts were distributed to states including Kerala (Rs 2,597 crore), Telangana (Rs 2,370 crore), Punjab (Rs 2,176 crore), Haryana (Rs 1,484 crore), and Arunachal Pradesh (Rs 1,476 crore). The release covers the regular tax devolution instalment for all 28 states.