Centre releases additional instalment of tax devolution to State Govts amounting to ₹1,09,019 cr - State-wise breakup

The Centre has released ₹1.09 lakh crore to states as an additional tax devolution instalment for FY27. Uttar Pradesh received the highest allocation at ₹19,208 crore, followed by Bihar and Madhya Pradesh.

The Centre has released ₹1,09,019 crore to state governments as an additional instalment of tax devolution, providing states with additional funds ahead of the festive season to accelerate infrastructure spending and meet development and welfare expenditure requirements.

The Ministry of Finance announced the release on 31 October 2026. The amount is over and above the regular monthly tax devolution and marks the second additional instalment released to states during the current financial year (FY27).

The Centre said the additional funds would enable state governments to accelerate capital expenditure and finance development and welfare-related spending. The release ahead of the festive season is also intended to provide states with greater financial resources to meet their expenditure commitments.

Uttar Pradesh received the highest allocation of ₹19,208 crore, accounting for the largest share of the additional instalment. Bihar followed with ₹10,845 crore, while Madhya Pradesh received ₹8,010 crore.

Top 10 states receiving the highest tax devolution

The following table lists the 10 states receiving the highest allocations from the additional ₹1,09,019 crore instalment.

How much did other states receive?

Among the other states, Gujarat received ₹4,094 crore, followed by Jharkhand at ₹3,660 crore and Chhattisgarh at ₹3,602 crore. Assam was allocated ₹3,552 crore, while Kerala received ₹2,597 crore and Telangana ₹2,370 crore.

Punjab received ₹2,176 crore, while Haryana was allocated ₹1,484 crore and Arunachal Pradesh ₹1,476 crore. Uttarakhand received ₹1,244 crore, followed by Himachal Pradesh at ₹996 crore.

Among the northeastern states, Tripura received ₹699 crore, Meghalaya ₹688 crore, Manipur ₹682 crore, Mizoram ₹615 crore and Nagaland ₹524 crore. Goa and Sikkim received ₹398 crore and ₹365 crore, respectively.

Why has the Centre released an additional instalment?

According to the Ministry of Finance, the additional release has been made in view of the upcoming festive season. It is also intended to help states accelerate capital spending and finance development and welfare-related expenditure.

Tax devolution is the transfer of states' share of the Union government's tax revenue to state governments. The latest release is an additional payment over and above the regular monthly instalment, giving states access to more funds during the financial year.

The Centre said this was the second additional instalment of tax devolution released during FY27. The total amount distributed through this particular additional instalment stands at ₹1,09,019 crore.

About the Author

Kirti Jha is a Senior Content Producer at Mint, where she writes on mutual funds, taxation, personal finance and macroeconomic developments. Her reporting focuses on helping readers understand complex financial developments through data-driven, research-backed stories that explain how policy changes, market trends and regulatory decisions affect investors and households. <br><br> Before joining Mint, Kirti worked at ET Money, where she specialised in mutual fund research and investment analysis. She tracked portfolio disclosures, fund manager strategies, sectoral allocation shifts and investment trends, distilling large datasets into investor-focused insights. Her work combined quantitative analysis with consumer-centric storytelling, enabling readers to better understand fund positioning, portfolio changes and long-term investment opportunities.<br><br> Kirti 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. Her academic training emphasised analytical thinking, quantitative research and financial decision-making, providing a strong foundation in understanding capital markets, financial systems and economic policy. With a combined experience in investment research and financial journalism, she is committed to producing accurate, accessible and insightful journalism that empowers readers to make well-informed financial decisions.