Union Government Releases Advance Tax Devolution of ₹1,09,019 Crore to States
The Union Government has released an additional installment of tax devolution amounting to ₹1,09,019 crore to State Governments on October 31, 2026. This release is in addition to the regular monthly devolution and represents the second additional installment in the current financial year. The advance payment is specifically timed in view of the upcoming festive season and is intended to enable states to accelerate capital spending while also financing their development and welfare-related expenditures.
State-wise Allocation Breakdown
The tax devolution amounts were distributed across all 28 states with significant variations based on allocation formulas. Uttar Pradesh received the highest allocation at ₹19,208 crore, followed by Bihar at ₹10,845 crore, and West Bengal at ₹7,866 crore. Other major recipients include Madhya Pradesh (₹8,010 crore), Maharashtra (₹7,022 crore), and Rajasthan (₹6,460 crore).
Smaller states received proportionally smaller allocations, with Goa receiving ₹398 crore, Sikkim ₹365 crore, and Nagaland ₹524 crore. The distribution covers all states in the Indian union with amounts ranging from the hundreds of crores for smaller states to thousands of crores for larger states.
This fiscal measure is designed to provide liquidity support to state governments during the festive period while simultaneously stimulating capital expenditure at the state level to support economic development objectives.