The Centre has released an additional Rs 1,09,019 crore to states, with Uttar Pradesh receiving the largest share at Rs 19,208 crore.
The Union government has released an additional Rs 1,09,019 crore to state governments, offering a pre-festive boost to public finances as the year’s spending cycle gathers pace. The Finance Ministry said the transfer, made on Saturday, was on top of the regular monthly devolution and was intended to help states step up capital expenditure while covering development and welfare outlays.
The latest payment is the second extra instalment of tax devolution in the 2026-27 financial year. According to the ministry, the timing was chosen to give states more room to fund projects and programmes before the festive period, when expenditure pressures often rise. The release follows an earlier additional devolution of the same size on 1 August, which the ministry said was meant to strengthen state finances and support capital and developmental spending.
State-wise allocations show Uttar Pradesh receiving the largest share at Rs 19,208 crore, followed by Bihar with Rs 10,845 crore and Madhya Pradesh with Rs 8,010 crore. Other major recipients included West Bengal at Rs 7,866 crore, Maharashtra at Rs 7,022 crore and Rajasthan at Rs 6,460 crore. The list also covered Odisha, Andhra Pradesh, Karnataka, Tamil Nadu, Gujarat, Jharkhand, Chhattisgarh, Assam, Kerala and Telangana, reflecting the broad distribution of the transfer across the country.
Tax devolution is the mechanism through which the Centre shares a portion of its tax receipts with the states. Under the framework accepted after the recommendations of the Sixteenth Finance Commission, states receive 41% of the divisible pool of central taxes. The Union Budget for 2026-27 has placed devolution to states at Rs 15.26 lakh crore, up from Rs 13.93 lakh crore in the revised estimates for 2025-26, underscoring the scale of fiscal support flowing to state governments this year.
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