New Delhi, Nov 1: In a major financial boost to state governments ahead of the festive season, the Centre on Saturday released an additional instalment of tax devolution amounting to Rs 1,09,019 crore. The amount comes over and above the regular monthly tax transfers and is aimed at strengthening the financial position of states.
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According to a statement issued by the Union Finance Ministry, the additional funds will help states accelerate capital expenditure, undertake development projects and meet welfare-related spending requirements during the festive period.
This is the second additional instalment of tax devolution released by the Centre during the current financial year, following a similar transfer of Rs 1,09,019 crore in August.
Uttar Pradesh Receives Highest Allocation
Among the states, Uttar Pradesh received the largest share of the latest instalment at Rs 19,208 crore, followed by Bihar with Rs 10,845 crore.
Madhya Pradesh received Rs 8,010 crore, while West Bengal was allocated Rs 7,866 crore. Maharashtra and Rajasthan received Rs 7,022 crore and Rs 6,460 crore, respectively.
The additional transfer is expected to provide states with greater spending flexibility, particularly for infrastructure development, public services and welfare programmes.
The Centre said the release reflects its commitment to strengthening state finances and enabling governments to increase capital and developmental expenditure.
Fiscal Deficit Reaches 42.1% of Annual Target
Meanwhile, the Centre’s fiscal deficit touched Rs 7.14 lakh crore during the first six months of the financial year 2026-27, covering the April-September period.
Official figures show that the deficit stood at 42.1 per cent of the full-year budget estimate of Rs 16.96 lakh crore.
The government’s revenue receipts during the April-September period amounted to Rs 17.57 lakh crore, accounting for 49.7 per cent of the annual target.
Of the total receipts, net tax revenue stood at Rs 12.76 lakh crore, while non-tax revenue contributed Rs 4.81 lakh crore.
Tax Collections Show Improvement
Net tax revenue reached 44.5 per cent of the full-year budget estimate, compared with 43.3 per cent during the corresponding period of the previous financial year.
Non-tax revenue also recorded an increase, rising to approximately Rs 4.81 lakh crore from Rs 4.7 lakh crore in the same period last year.
The latest tax devolution comes at a crucial time for state governments, providing additional resources to support public spending and development activities.
With the festive season underway, the additional allocation is expected to help states meet expenditure commitments while maintaining momentum in infrastructure creation and welfare initiatives.
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