Centre Advances Tax Devolution of ₹1.09 Lakh Crore to States; Uttar Pradesh Receives Highest Share

The Central government has released a regular tax devolution instalment of ₹1,09,019 crore to all 28 states in advance of the festive season. Uttar Pradesh received the largest allocation among all states, followed by Bihar and Madhya Pradesh.

The Finance Ministry has released a regular instalment of tax devolution amounting to ₹1,09,019 crore to state governments in advance. The monthly instalment, which is normally scheduled for release on November 10, was disbursed on November 5.

According to the Ministry, the early release aims to enable states to accelerate capital spending and finance development and welfare-related expenditure ahead of the upcoming festive season. Currently, 41 percent of taxes collected by the Centre are devolved to states in 14 instalments over the course of a fiscal year, covering all 28 states.

Uttar Pradesh received the largest share of the advanced funds, totaling ₹19,208 crore. Bihar followed with an allocation of ₹10,845 crore, while Madhya Pradesh received ₹8,010 crore. West Bengal was allocated ₹7,866 crore, and Maharashtra received ₹7,022 crore.

Other allocations include ₹6,460 crore for Rajasthan, ₹4,819 crore for Odisha, ₹4,597 crore for Andhra Pradesh, and ₹4,504 crore for Karnataka. Tamil Nadu received ₹4,466 crore, Gujarat was allocated ₹4,094 crore, and Jharkhand received ₹3,660 crore. Chhattisgarh received ₹3,602 crore, Assam was allocated ₹3,552 crore, Kerala received ₹2,597 crore, Telangana received ₹2,370 crore, and Punjab was allocated ₹2,176 crore.

Smaller allocations went to states including Haryana at ₹1,484 crore, Arunachal Pradesh at ₹1,476 crore, Uttarakhand at ₹1,244 crore, and Himachal Pradesh at ₹996 crore. Tripura received ₹699 crore, Meghalaya was allocated ₹688 crore, Manipur received ₹682 crore, Mizoram was allocated ₹615 crore, Nagaland received ₹524 crore, Goa was allocated ₹398 crore, and Sikkim received the lowest share at ₹365 crore.

"The advance release of ₹1.09 lakh crore in tax devolution by the Centre is a positive step for state-level liquidity. By disbursing these funds ahead of the regular schedule, state governments gain better financial flexibility to push capital spending and support local development initiatives during the festive period. For businesses operating regionally, increased government expenditure often translates to improved public infrastructure progress and better demand generation in local markets." — Dr. Shishir Gupta, Founder & CEO, StartupLanes