📷 Image: Wikimedia Commons / Original: Sachinghai09
Derivative work: Radomian
Business
Centre releases Rs 1.09 lakh crore to states ahead of schedule, Uttar Pradesh gets biggest share
✍️ The Economic Times
🗓 06 Nov 2026, 03:01 AM
👁 13
The Union government transferred Rs 1.09 lakh crore to state governments five days before the scheduled date, with Uttar Pradesh receiving the largest allocation.
New Delhi announced the early release of a cumulative Rs 1.09 lakh crore to all state governments, advancing the disbursement by five days to meet urgent fiscal needs. The central finance ministry said the move aims to bolster state budgets ahead of the upcoming monsoon season and to support ongoing development projects.
Uttar Pradesh, the most populous state, was allotted the highest share of the funds, reflecting its large expenditure requirements and the central government's focus on the state's infrastructure and welfare schemes. The exact quantum for Uttar Pradesh was not disclosed in the brief, but officials confirmed it exceeds the allocations to any other state.
Other states will receive their portions proportionally, based on formulas that consider population, fiscal deficit and project pipelines. The early transfer is expected to ease cash flow pressures and enable timely implementation of schemes in health, education and rural development.
The finance ministry reiterated that the early release does not alter the overall fiscal plan for the year and that the funds will be accounted for in the Union budget. State finance departments are instructed to utilise the money strictly for approved programmes and to report utilisation quarterly.
Uttar Pradesh, the most populous state, was allotted the highest share of the funds, reflecting its large expenditure requirements and the central government's focus on the state's infrastructure and welfare schemes. The exact quantum for Uttar Pradesh was not disclosed in the brief, but officials confirmed it exceeds the allocations to any other state.
Other states will receive their portions proportionally, based on formulas that consider population, fiscal deficit and project pipelines. The early transfer is expected to ease cash flow pressures and enable timely implementation of schemes in health, education and rural development.
The finance ministry reiterated that the early release does not alter the overall fiscal plan for the year and that the funds will be accounted for in the Union budget. State finance departments are instructed to utilise the money strictly for approved programmes and to report utilisation quarterly.