Centre releases Rs 1.09 lakh crore to states ahead of schedule, UP gets biggest share
The Union Government has released ₹1,09,019 crore to 28 states as part of its monthly tax devolution, five days ahead of schedule. The Ministry of Finance announced the release on Thursday, November 5, saying the decision would help state governments meet their spending requirements during the festive season. Uttar Pradesh received the largest allocation at ₹19,208 crore, followed by Bihar with ₹10,845 crore.
The instalment was originally scheduled for November 10. The Centre advanced the payment to November 5 to help states accelerate infrastructure projects and finance development and welfare expenditure. The amount is part of the regular monthly tax-sharing arrangement between the Centre and states, rather than a separate financial assistance package.
Which states received the most money?
According to the state-wise figures released by the Ministry of Finance, Uttar Pradesh received the highest allocation, followed by Bihar and Madhya Pradesh.
The ten largest allocations are:
| State | Amount |
|---|---|
| Uttar Pradesh | ₹19,208 crore |
| Bihar | ₹10,845 crore |
| Madhya Pradesh | ₹8,010 crore |
| West Bengal | ₹7,866 crore |
| Maharashtra | ₹7,022 crore |
| Rajasthan | ₹6,460 crore |
| Odisha | ₹4,819 crore |
| Andhra Pradesh | ₹4,597 crore |
| Karnataka | ₹4,504 crore |
| Tamil Nadu | ₹4,466 crore |
Goa received ₹398 crore, and Sikkim received ₹365 crore.
Why did the Centre release the money early?
The government said the early payment would provide states with funds ahead of the festive season.
State governments can use these resources for infrastructure development, welfare programmes and other budgeted expenditure.
The move could help states manage immediate financial commitments without waiting for the regular November 10 instalment.
What is tax devolution and how does it work?
Tax devolution is the process through which the Central Government shares a portion of its tax revenue with states.
The amount each state receives follows a formula recommended by the Finance Commission, taking into account factors such as population, income differences and geographical area.
This allows states to finance public services, including healthcare, education, roads and welfare programmes.
The November payment is part of that established arrangement. Advancing its release gives states earlier access to funds already scheduled for distribution.