Centre Advances November Tax Devolution, Releases Rs 1.09 Lakh Crore to States Ahead of Festive Season
The Finance Ministry said the advance transfer will help states speed up capital spending and fund development and welfare outlays.
- On Thursday, the Union Government released a regular tax devolution instalment of Rs 1.09 lakh crore to State Governments, advancing the scheduled November 10 payment to support festive season spending.
- The Finance Ministry stated the advance release enables State Governments to accelerate capital spending and finance development and welfare expenditure ahead of Diwali celebrations.
- Uttar Pradesh receives the largest share at Rs 19,208 crore, about 17.6 per cent of the total, while five major states together account for Rs 52,951 crore, nearly half the amount released.
- Bihar follows with Rs 10,845 crore, Madhya Pradesh with Rs 8,010 crore, West Bengal with Rs 7,866 crore, and Maharashtra with Rs 7,022 crore; smaller states like Nagaland receive Rs 524 crore, Goa Rs 398 crore, and Sikkim Rs 365 crore.
- Currently, 41% of taxes collected by the Centre is devolved in 14 instalments annually among states. The Union Government previously released advance instalments on August 1 and October 1, 2025, establishing a pattern of accelerated transfers ahead of major spending periods.
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The Economic Times
Times of IndiaCentre advances November tax devolution, releases Rs 1.09 lakh crore to states ahead of festive season
On November 5, 2026, the Centre released over Rs 1.09 lakh crore to state governments in advance. This release is typically done on November 10 each year, but it was advanced this time. The finance ministry stated that this advance supports states in boosting capital expenditures. The advance aims to assist states in financing their development and welfare-related projects.
Festive bonanza: Centre releases Rs 2.18 lakh crore to states in five days through tax devolution
With the additional instalment released on October 31 and the regular November instalment advanced to November 5, the Centre has delivered a substantial financial boost to states in a matter of days.
The central government has taken a key decision to celebrate the festive season across the country. It has sanctioned funds due to the states under their tax share in advance.
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