New Delhi, November 1, 2026: The Central Government has released an additional ₹1,09,019 crore to 28 states as an advance instalment of their share of central taxes. Uttar Pradesh received the largest allocation of ₹19,208 crore, followed by Bihar with ₹10,845 crore and Madhya Pradesh with ₹8,010 crore.
The Ministry of Finance announced the release on October 31, stating that the funds had been transferred ahead of the festive season to help state governments accelerate infrastructure development and meet welfare-related expenditure.
The payment is in addition to the regular monthly transfer of central tax revenue to states. It is the second additional instalment released during the current financial year, 2026–27.
The Central Government previously released an advance instalment of ₹1,09,019 crore on August 1, 2026, providing states with funds ahead of their regular monthly transfer schedule.
Under India’s tax devolution system, a portion of the taxes collected by the Central Government is distributed among states. These payments represent states’ share of central tax revenue rather than new loans or grants under a separate government scheme.
Uttar Pradesh received ₹19,208 crore, the highest allocation among the 28 states. Bihar followed with ₹10,845 crore, while Madhya Pradesh was allocated ₹8,010 crore.
West Bengal received ₹7,866 crore, Maharashtra ₹7,022 crore and Rajasthan ₹6,460 crore. Odisha was allocated ₹4,819 crore, Andhra Pradesh ₹4,597 crore and Karnataka ₹4,504 crore.
Tamil Nadu received ₹4,466 crore, Gujarat ₹4,094 crore, Jharkhand ₹3,660 crore, Chhattisgarh ₹3,602 crore and Assam ₹3,552 crore.
Among other states, Kerala received ₹2,597 crore, Telangana ₹2,370 crore, Punjab ₹2,176 crore and Haryana ₹1,484 crore. Arunachal Pradesh was allocated ₹1,476 crore, Uttarakhand ₹1,244 crore and Himachal Pradesh ₹996 crore.
The remaining allocations were ₹699 crore for Tripura, ₹688 crore for Meghalaya, ₹682 crore for Manipur, ₹615 crore for Mizoram, ₹524 crore for Nagaland, ₹398 crore for Goa and ₹365 crore for Sikkim.
According to the ministry, the advance instalment is intended to help state governments accelerate capital expenditure and meet spending requirements for development and welfare programmes.
The transfer provides states with funds ahead of the regular monthly schedule, giving them greater flexibility to manage their expenditure.
However, the ministry did not identify specific infrastructure projects to be financed through the latest release or prescribe how much each state must allocate to particular development or welfare initiatives.
The ₹1.09 lakh crore payment is not a newly announced infrastructure package or a direct financial benefit for citizens. It represents an additional advance instalment under the existing system for sharing central tax revenue with states.
The latest transfer is expected to improve the availability of funds for state governments as they undertake development and welfare expenditure.
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