📷 Image: Wikimedia Commons / Ministry of Finance of India
Business
Centre releases ₹1.09 lakh crore additional tax devolution to states, state-wise allocation disclosed
✍️ Livemint
🗓 02 Nov 2026, 03:33 AM
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The Union Finance Ministry has announced an extra instalment of tax devolution worth ₹1,09,019 crore for state governments, accompanied by a detailed state‑wise breakup.
The Union Finance Ministry on Monday disclosed an additional instalment of tax devolution amounting to ₹1,09,019 crore to be transferred to all state governments. The move follows the latest recommendations of the Finance Commission and is aimed at strengthening state finances ahead of the upcoming fiscal year.
A detailed state‑wise breakdown was released, showing that larger economies such as Uttar Pradesh, Maharashtra and Tamil Nadu will receive the highest shares, while smaller states will get proportionately lower amounts. The allocation reflects each state's revenue‑raising capacity and fiscal deficit.
The funds are expected to be credited to the states' accounts in the next financial cycle, providing extra resources for welfare programmes, infrastructure projects and other priority spending. Analysts say the additional devolution underscores the centre's commitment to fiscal federalism and could ease budgetary pressures for several states.
State officials have welcomed the announcement, noting that the extra resources will help bridge gaps in their expenditure plans and support ongoing development initiatives.
A detailed state‑wise breakdown was released, showing that larger economies such as Uttar Pradesh, Maharashtra and Tamil Nadu will receive the highest shares, while smaller states will get proportionately lower amounts. The allocation reflects each state's revenue‑raising capacity and fiscal deficit.
The funds are expected to be credited to the states' accounts in the next financial cycle, providing extra resources for welfare programmes, infrastructure projects and other priority spending. Analysts say the additional devolution underscores the centre's commitment to fiscal federalism and could ease budgetary pressures for several states.
State officials have welcomed the announcement, noting that the extra resources will help bridge gaps in their expenditure plans and support ongoing development initiatives.