Center releases ₹1,09,019 crore additional installment of tax devolution to state governments – State parting ways | Today’s news
The center issued ₹1,09,019 crore to state governments as an additional installment of fiscal decentralization to provide additional funds to states ahead of the festive season to accelerate infrastructure spending and meet development and social spending requirements.
The finance ministry announced the release on October 31, 2026. The amount is over and above the regular monthly tax devolution and is the second additional installment released to states during current financial year (FY27).
The center said the additional funds will enable state governments to accelerate capital spending and finance development and social welfare spending. The release ahead of the festive season is also intended to provide states with greater financial resources to meet their spending commitments.
Uttar Pradesh got the highest allocation ₹19,208 crore, which represents the largest share of additional installment. Bihar followed suit ₹10,845 crore while Madhya Pradesh received ₹8,010 million crowns.
Top 10 states with the highest tax devolution
The following table lists the 10 states that received the highest allocations of the others ₹Installment of 1,09,019 million crowns.
How much did other states get?
Among other states he received Gujarat ₹4,094 crore, followed by Jharkhand at ₹3,660 crore and Chhattisgarh at ₹3,602 million. Assam was assigned ₹3,552 crore while Kerala received ₹2,597 crore and Telangana ₹2,370 million crowns.
Punjab received ₹2,176 crore while Haryana was allocated ₹1,484 crore and Arunachal Pradesh ₹1,476 million. Uttarakhand received ₹1,244 crore, followed by Himachal Pradesh at ₹996 million.
Among the northeastern states, it received Tripura ₹699 crore, Meghalaya ₹688 crore, Manipur ₹682 crore, Mizoram ₹615 crore and Nagaland ₹524 million. Goa and Sikkim received ₹398 million and ₹365 million, or
Why did the center release the additional installment?
According to the Ministry of Finance, the additional release was made in view of the upcoming festive season. It is also intended to help states accelerate capital expenditure and finance development and related welfare expenses.
Tax decentralization is the transfer of the states’ share of the Union government’s tax revenue to the state governments. The latest version is an additional payment on top of regular monthly installments, allowing states to access more funds during the financial year.
The center said this is the second additional installment tax carryover released during fiscal year 27. Total amount the amount distributed through this special additional installment amounts to ₹1,09,019 crores.
