Centre releases an additional tax devolution instalment of Rs 1,09,019 crore to the States
31 October 2026
The Union Finance Ministry has released Rs 1,09,019 crore to the State governments as an additional instalment of tax devolution. This is over and above the regular monthly devolution, and it is the second such additional instalment in the current financial year. The Ministry says the money is meant to help States spend faster on capital works and on development and welfare during the festive season. Uttar Pradesh received the largest share at Rs 19,208 crore, followed by Bihar with Rs 10,845 crore and Madhya Pradesh with Rs 8,010 crore. Kerala's share is Rs 2,597 crore. Twenty-eight States are covered in the release. Tax devolution is the States' share of the taxes collected by the Union, and the share is fixed on the recommendation of the Finance Commission.
In plain words
Tax devolution Share of Union taxes transferred to States — The portion of taxes collected by the Union government that is passed on to the States on the Finance Commission's recommendation.