Why did the Union Government advance the November instalment of tax devolution?
- A.Because the Finance Commission's term was ending
- B.In view of the festive season and to help states accelerate capital spending
- C.To offset a shortfall in GST compensation
- D.Because states had failed to meet borrowing limits
Correct answer
Explanation
The correct answer is that the release was advanced in view of the festive season and to help states accelerate capital spending. The Ministry of Finance said the early transfer would also let states finance expenditure related to development and welfare. The instalment that would normally have gone out on 10 November 2026 was therefore paid on 5 November 2026, five days sooner, while the amount of Rs 1,09,019 crore remained a regular instalment rather than an extra grant. Option A is wrong because nothing was said about the term of the Finance Commission. Option C is wrong because this release is the states' share of central taxes and was not linked to any compensation shortfall. Option D is wrong because the reason given was to support state spending, not to penalise or correct state borrowing. Hence option B is right.
Read the full article: Centre Releases Rs 1,09,019 Crore Tax Devolution Early
Practice Questions
How much tax devolution did the Union Government release to state governments on 5 November 2026?
- A.Rs 89,086 crore
- B.Rs 1,09,019 crore
- C.Rs 1,78,173 crore
- D.Rs 2,09,019 crore
Show answer
This was the regular instalment of tax devolution that the Union Government transferred to the state governments, and it was released on 5 November 2026.
Read the full explanation →Which state received the largest amount in this instalment of tax devolution?
- A.Maharashtra
- B.Bihar
- C.Uttar Pradesh
- D.West Bengal
Show answer
In the state-wise break-up published with the release, Uttar Pradesh was allotted the largest amount of the Rs 1,09,019 crore shared among twenty-eight states, which follows from its being the biggest claimant on the states' share of central taxes.
Read the full explanation →What key change do the Mineral (Auction) Third Amendment Rules, 2026 make for Part D minerals?
- A.Revenue share for the winner is capped at 50 per cent
- B.Technically qualified bidders needed in the second round fall from three to two
- C.Only public sector undertakings may bid in the second round
- D.The auction switches from forward to reverse bidding
Show answer
The government notified these rules on 16 October 2026, and the change has been written into the tender documents of both tranches launched in Goa.
Read the full explanation →Under which section of the MMDR Act was the Exploration Licence introduced?
- A.Section 4A
- B.Section 9B
- C.Section 10BA
- D.Section 11D
Show answer
The Exploration Licence was created through Section 10BA of the MMDR Act, and it allows private industry to put money into exploring minerals even before mining itself begins.
Read the full explanation →How many critical and strategic mineral blocks are on offer in the ninth tranche of e-auction launched by the Ministry of Mines?
- A.15 blocks
- B.20 blocks
- C.29 blocks
- D.64 blocks
Show answer
The ninth tranche of the e-auction of critical and strategic mineral blocks places twenty blocks before bidders, drawn from eight states.
Read the full explanation →