India

Centre Distributes ₹1,09,019 Crore as Second Additional Tax Devolution Instalment to States

By Kirti Jha

The Ministry of Finance announced on 31 October 2026 that the Centre has released ₹1,09,019 crore to state governments as an additional instalment of tax devolution. The payment is in addition to the regular monthly instalments and is the second such extra release in the current financial year (FY27). The funds are intended to help states accelerate capital expenditure and finance development and welfare spending, particularly ahead of the festive season.

Uttar Pradesh received the largest share, ₹19,208 crore, followed by Bihar with ₹10,845 crore and Madhya Pradesh with ₹8,010 crore. The ten states with the highest allocations were: Uttar Pradesh, Bihar, Madhya Pradesh, Gujarat (₹4,094 crore), Jharkhand (₹3,660 crore), Chhattisgarh (₹3,602 crore), Assam (₹3,552 crore), Kerala (₹2,597 crore), Telangana (₹2,370 crore) and Punjab (₹2,176 crore). Other allocations were: Haryana (₹1,484 crore), Arunachal Pradesh (₹1,476 crore), Uttarakhand (₹1,244 crore), Himachal Pradesh (₹996 crore), Tripura (₹699 crore), Meghalaya (₹688 crore), Manipur (₹682 crore), Mizoram (₹615 crore), Nagaland (₹524 crore), Goa (₹398 crore) and Sikkim (₹365 crore).

Tax devolution transfers the share of Union tax revenue that belongs to states to the state governments. The additional release is aimed at providing states with greater financial resources to meet their expenditure commitments during the year.

Kirti Jha, Senior Content Producer at Mint, wrote the piece. She has a background in mutual fund research and investment analysis and holds a Bachelor’s degree in Economics from Indraprastha College for Women, University of Delhi, and a Master’s in Finance from the Jindal School of Banking & Finance at O.P. Jindal Global University.