Centre Releases Rs 1,09,019 Crore Tax Devolution Early

The Union Government has transferred a regular instalment of tax devolution worth Rs 1,09,019 crore to state governments. The money went out on 5 November 2026, although the monthly instalment would ordinarily have been released on 10 November 2026. The Ministry of Finance advanced it by five days with the festive season in mind.

Why the date was moved

Two reasons were given for the early release. The first is the festive season, when state spending rises. The second is to let states pick up the pace of capital spending and pay for expenditure tied to development and welfare. Tax devolution is the states' share of central taxes and is handed over in monthly instalments, so bringing one forward puts cash in state treasuries sooner without changing the amount due.

Who received how much

The instalment was shared among 28 states, and the ministry published a state-wise break-up. Uttar Pradesh drew the largest amount, as its share of central taxes is the biggest of any state. Bihar came next, followed by Madhya Pradesh, West Bengal, Maharashtra and Rajasthan. Among the rest, Odisha, Andhra Pradesh, Karnataka, Tamil Nadu and Gujarat each received sums in the same broad range.

The smaller states

At the other end of the table, Sikkim received the smallest amount, with Goa just above it. The north-eastern states of Nagaland, Mizoram, Manipur, Meghalaya and Tripura, along with Himachal Pradesh, Uttarakhand, Haryana, Punjab and Arunachal Pradesh, were allotted amounts smaller than those of the large states, in keeping with the formula by which their shares are worked out.

What it means for states

Devolution is untied money, so a state may spend it as it chooses, unlike a centrally sponsored scheme grant. An early transfer therefore matters most for capital works, where contractors have to be paid on time if a project is to stay on schedule. For states that run tight cash balances through the second half of the financial year, receiving the instalment on 5 November rather than 10 November eases borrowing pressure for those days and helps clear bills during the festival weeks.