Friday, Nov 6, 2026
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Centre Transfers ₹1.09 Lakh Crore to 28 States Ahead of Schedule

The Union Government has released ₹1.09 lakh crore to state governments ahead of schedule, giving states a cash boost ahead of the festive season. The Ministry of Finance announced on November 5, 2026, that ₹1,09,019 crore will be released under the Centre’s regular monthly tax devolution mechanism.

Centre releases tax devolution funds to states
Centre releases tax devolution funds to states | Photo Credit: magnific

The instalment (scheduled for November 10) will be released five days earlier, the Ministry of Finance said. The move is to help state governments speed up capital expenditure and fulfil development and welfare spending requirements.

Uttar Pradesh got the highest allocation of ₹19,208 crore, followed by Bihar with ₹10,845 crore and Madhya Pradesh with ₹8,010 crore. The funds have been distributed among 28 states as per their share under the tax sharing arrangement.

The early release is expected to give state governments additional financial space to carry out ongoing infrastructure projects, public services and welfare programmes during the festive season.

Uttar Pradesh Receives the Largest Share

Uttar Pradesh received the largest allocation under the November tax devolution instalment with ₹19,208 crore; Bihar got ₹10,845 crore, and Madhya Pradesh got ₹8,010 crore.

West Bengal got ₹7,866 crore; Maharashtra got ₹7,022 crore, and Rajasthan got ₹6,460 crore.

Among the southern states, Andhra Pradesh got ₹4,597 crore; Karnataka ₹4,504 crore and Tamil Nadu ₹4,466 crore. Kerala got ₹2,597 crore and Telangana ₹2,370 crore.

The state-wise allocation shows how much of the Centre’s tax revenue is distributed among states under the existing devolution framework.

State-wise tax devolution: How much did each state get?

The Ministry of Finance released the state-wise allocation under the November 2026 tax devolution instalment as below:

State Allocation
Uttar Pradesh ₹19,208 crore
Bihar ₹10,845 crore
Madhya Pradesh ₹8,010 crore
West Bengal ₹7,866 crore
Maharashtra ₹7,022 crore
Rajasthan ₹6,460 crore
Odisha ₹4,819 crore
Andhra Pradesh ₹4,597 crore
Karnataka ₹4,504 crore
Tamil Nadu ₹4,466 crore
Gujarat ₹4,094 crore
Chhattisgarh ₹3,602 crore
Jharkhand ₹3,660 crore
Assam ₹3,552 crore
Kerala ₹2,597 crore
Telangana ₹2,370 crore
Punjab ₹2,176 crore
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
Sikkim ₹365 crore

The allocations are part of the monthly transfer of states’ share in central tax revenues.

Why Did the Centre Release the Funds Early?

The Union Government said the early release was to support state spending ahead of the festive season.

State governments need large amounts of money to run public services, welfare schemes and infrastructure development. Funds received before the due date can help states better plan immediate expenditure requirements.

The early transfer could also help states accelerate capital spending on roads, public infrastructure and other development projects.

However, the November instalment is not a separate financial assistance package. It is part of the regular tax devolution mechanism through which the Centre shares its tax revenues with state governments.

What Is Tax Devolution?

Tax devolution is the process through which the Union Government transfers a portion of its tax revenue to state governments.

The distribution is based on recommendations made by the Finance Commission. The allocation formula takes into account population, income difference, geographical area, and other parameters specified by the Commission.

These transfers are an important source of revenue for state governments to finance expenditure on healthcare, education, infrastructure, public welfare and other essential services.

The November 5 release gives states earlier access to funds that were already scheduled to be distributed.

Uttar Pradesh, Bihar and Madhya Pradesh got the largest shares from the latest transfer so it is hoped that state spending and development activities across the country will benefit from this latest transfer.

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