Central government releases extra tax devolution installment of ₹1,09,019 crore to states

The central government has announced an additional tax devolution installment of ₹1,09,019 crore to state governments. According to a PIB report, this amount was disbursed to states on October 31, 2026. This amount is in addition to the regular monthly tax devolution received by states. This is the second additional installment given by the central government to states in the current financial year.

According to a statement by the Ministry of Finance, this amount has been announced keeping the upcoming festive season in mind. Its main objectives are to enable states to accelerate their capital expenditure and make financial arrangements for development and welfare-related expenditures. According to a Business Standard report, currently, 41 percent of the taxes collected by the Centre are given to states in 14 installments during a financial year.

Among the figures for allocation received by states, Uttar Pradesh has emerged as the highest recipient state, which has been given ₹19,208 crore. This is followed by Bihar, which has been allocated ₹10,845 crore. According to a report by The Economic Times, Madhya Pradesh received ₹8,010 crore, West Bengal received ₹7,866 crore, Maharashtra received ₹7,022 crore and Rajasthan received ₹6,460 crore. Odisha was given ₹4,819 crore and Andhra Pradesh was given ₹4,597 crore. According to a report by The Hindu, Karnataka received an additional installment of ₹4,504 crore.

According to the state-wise detailed figures released by PIB, Gujarat has been allocated ₹4,094 crore. Talking about other states, Chhattisgarh got ₹3,602 crore, Jharkhand got ₹3,660 crore, Assam got ₹3,552 crore, Tamil Nadu got ₹4,466 crore, Telangana got ₹2,370 crore, Punjab got ₹2,176 crore, Kerala got ₹2,597 crore and Haryana got ₹1,484 crore. Arunachal Pradesh has been allocated ₹1,476 crore, Uttarakhand ₹1,244 crore, Himachal Pradesh ₹996 crore, Meghalaya ₹688 crore, Manipur ₹682 crore, Mizoram ₹615 crore, Nagaland ₹524 crore, Goa ₹398 crore and Sikkim ₹365 crore. Tripura received ₹699 crore.

The Ministry of Finance has clarified that the purpose of this additional installment is to provide the necessary financial assistance to states for their developmental works and public welfare works. This allocation will help states in giving momentum to their capital schemes and developmental expenditures. These statistical details show that this large amount of allocation made by the central government is intended to boost economic activities in various states of the country. Thus, through this additional installment, an effort has been made to provide financial strength to states during the festive season and for long-term development works.