States get addition instalment of tax devolution of ₹1.09 lakh crore, supported by strong economy, taxes—See break-up

Centre releases addition instalment of tax devolution of ₹1.09 lakh crore to states. Union Finance Minister Nirmala Sitharaman said this comes amid stronger economic activity and buoyant tax collections. (AI generated image for representational purposes only)AI Quick ReadThe Centre has released an additional installment of tax devolution of ₹1,09,019 crore to states in advance amid the festive season to enable them to accelerate capital spending and finance their development / welfare related expenditure, the Finance Ministry said in a press release.

The instalment of ₹1.09 lakh crore released on 31 October is in addition to the regular monthly devolution and is the second additional instalment of this financial year, it added.

Union Finance Minister Nirmala Sitharaman in a post on social media platform X (formerly known as Twitter), said this second additional instalment this financial year is supported by stronger economic activity and buoyant tax collections.

“The release will help States accelerate infrastructure development, finance welfare programmes and provide further momentum to economic growth across India,” she added.

Usually, 41% of taxes collected by the Centre is devolved in 14 instalments among states during a fiscal year, as per a PTI report.

As per the above state-wise allocation, Uttar Pradesh received the highest amount of ₹19,208 crore, followed by Bihar at ₹10,845 crore, and Madhya Pradesh at ₹8,010 crore. This was followed by West Bengal, which received ₹7,866 crore, Maharashtra which got ₹7,022 crore, and Rajasthan got ₹6,460 crore.

Among other major states, Odisha received ₹4,819 crore, Andhra Pradesh got ₹4,597 crore, Karnataka received ₹4,504 crore, Tamil Nadu received ₹4,466 crore, and Gujarat got ₹4,094 crore.

The allocation also included ₹3,660 crore for Jharkhand, ₹3,602 crore for Chhattisgarh, ₹3,552 crore for Assam, ₹2,597 crore for Kerala and ₹2,370 crore for Telangana.

Tax devolution refers to the distribution of a share of central tax collections among state governments, providing them with resources to finance their expenditure priorities, according to an ANI report.

It said that under the framework, accepted by the government following the recommendations of the 16th Finance Commission, states are entitled to 41 per cent of the divisible pool of central taxes.

The Union Budget 2026-27 has estimated tax devolution to states at ₹15.26 lakh crore, compared with ₹13.93 lakh crore in the revised estimates for 2025-26, it added.

Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br> As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br> Jocelyn&#x27;s writing philosophy is focused on delivering news in an accurate and accessible format for readers. She thus focuses her news coverage on explainers and FAQs in order to breakdown business, corporate, economic, and policy topics that are of importance to everyday readers.<br> She holds a Bachelors in Mass Media (BMM) and Post Graduate Diploma (PGD) in Journalism and Communication and has previously written for online business and markets news site Moneycontrol (Network18), Business-to-business (B2B) trade publications — the industry magazines Power Today and Solar Today (ASAPP Media), and the national news agency United News of India (UNI).<br> Outside of work, Jocelyn keeps up-to-date with local and international news, enjoys reading fiction books, novels and short stories, and enjoys movies, travelling and art. <br> She can be found on X and LinkedIn, and reached by email: <a href="jocelyn.fernandes@htdigital.in">jocelyn.fernandes@htdigital.in</a> <br> X/ Twitter handle: <a href="https://x.com/scribeJocelyn">@scribeJocelyn</a> <br> LinkedIn: <a href="https://in.linkedin.com/in/jocelyn-fernandes-journalist">LinkedIn</a>

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