Business · Economy · 9 hrs ago
Centre releases ₹1.09 lakh crore in extra tax transfers to states
The Indian government released ₹1,09,019 crore in extra tax transfers to state governments on Saturday.
The payment is in addition to the regular monthly transfer and is the second additional instalment this financial year.
The Centre said the funds are being released ahead of the festive season to support states’ spending.
States can use the money for infrastructure, development and welfare programmes.
Finance Minister Nirmala Sitharaman said strong economic activity and tax collections supported the extra payment.
Uttar Pradesh received the largest share, at ₹19,208 crore, followed by Bihar with ₹10,845 crore.
The money is intended to help states increase capital spending and meet commitments.
The Centre released ₹1,09,019 crore in additional tax devolution to state governments.
The transfer is in addition to the regular monthly devolution and is the second additional instalment this financial year.
The Finance Ministry said the funds would support capital spending and development and welfare expenditure ahead of the festive season.
Finance Minister Nirmala Sitharaman said strong economic activity and buoyant tax collections supported the release.
Uttar Pradesh received the largest allocation, at ₹19,208 crore.
- Who
- The Centre released funds to state governments.
- What
- It transferred ₹1,09,019 crore as additional tax devolution, beyond the regular monthly transfer.
- When
- Saturday, October 31, 2026.
- Where
- Across India, to state governments.
- Why
- The release was intended to help states fund capital spending and development and welfare expenditure ahead of the festive season.
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- Total release
- ₹1,09,019 crore
- Largest allocation
- Uttar Pradesh: ₹19,208 crore
- Second-largest allocation
- Bihar: ₹10,845 crore
- Share devolved
- 41 per cent of taxes collected by the Centre
- Installments
- Tax devolution is made in 14 instalments during a fiscal year
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What people are saying
The release will help States accelerate infrastructure development, finance welfare programmes and provide further momentum to economic growth across India,