New Delhi: The Union Government on Saturday released an additional instalment of tax devolution amounting to Rs 1,09,019 crore to state governments, over and above the regular monthly devolution, the Ministry of Finance said in a statement issued through the Press Information Bureau (PIB) on October 31, 2026. This is the second additional instalment released in the current financial year 2026-27.

Source: PIB / Ministry of Finance via ANI (Devdiscourse)

The ministry said the release was made 'in view of the upcoming festive season and to enable States to accelerate capital spending, and also to finance their development/welfare related expenditure.' Finance Minister Nirmala Sitharaman said in a post on X that the second additional instalment this financial year is supported by stronger economic activity and buoyant tax collections, The Hindu BusinessLine reported.

Source: The Hindu BusinessLine

Rs 1,09,019 croreAdditional tax devolution released on October 31
Rs 19,208 croreUttar Pradesh — the largest state share
Rs 2,176 crorePunjab's share of the instalment
41%States' share of the divisible pool of central taxes

According to the state-wise breakup released by the ministry, Bihar received Rs 10,845 crore and Madhya Pradesh Rs 8,010 crore, followed by West Bengal at Rs 7,866 crore, Maharashtra at Rs 7,022 crore and Rajasthan at Rs 6,460 crore. Odisha received Rs 4,819 crore, Andhra Pradesh Rs 4,597 crore, Karnataka Rs 4,504 crore, Tamil Nadu Rs 4,466 crore and Gujarat Rs 4,094 crore, while Jharkhand received Rs 3,660 crore, Chhattisgarh Rs 3,602 crore, Assam Rs 3,552 crore, Kerala Rs 2,597 crore and Telangana Rs 2,370 crore.

Source: ANI via Devdiscourse

The Centre had earlier released an additional instalment of the same amount, Rs 1,09,019 crore, on August 1 as an advance instalment to support states' capital and developmental expenditure, IANS reported. The identical figure reflects the standard monthly devolution instalment amount for this financial year.

Source: IANS via hi INDiA

Under the framework accepted by the government following the recommendations of the 16th Finance Commission, states are entitled to 41 per cent of the divisible pool of central taxes, devolved in 14 instalments during a fiscal year. The Union Budget 2026-27 has estimated tax devolution to states at Rs 15.26 lakh crore, compared with Rs 13.93 lakh crore in the revised estimates for 2025-26.

Source: ANI via Devdiscourse