The Centre has released an additional installment of tax devolution of ₹1,09,019 crore to states in advance amid the festive season to enable them to accelerate capital spending and finance their development / welfare related expenditure, the Finance Ministry said in a press release.The instalment of ₹1.09 lakh crore released on 31 October is in addition to the regular monthly devolution and is the second additional instalment of this financial year, it added.Union Finance Minister Nirmala Sitharaman in a post on social media platform X (formerly known as Twitter), said this second additional instalment this financial year is supported by stronger economic activity and buoyant tax collections.“The release will help States accelerate infrastructure development, finance welfare programmes and provide further momentum to economic growth across India,” she added.Usually, 41% of taxes collected by the Centre is devolved in 14 instalments among states during a fiscal year, as per a PTI report.Additional installment of tax devolution: State-wise breakupAs per the above state-wise allocation, Uttar Pradesh received the highest amount of ₹19,208 crore, followed by Bihar at ₹10,845 crore, and Madhya Pradesh at ₹8,010 crore.

This was followed by West Bengal, which received ₹7,866 crore, Maharashtra which got ₹7,022 crore, and Rajasthan got ₹6,460 crore.Among other major states, Odisha received ₹4,819 crore, Andhra Pradesh got ₹4,597 crore, Karnataka received ₹4,504 crore, Tamil Nadu received ₹4,466 crore, and Gujarat got ₹4,094 crore.The allocation also included ₹3,660 crore for Jharkhand, ₹3,602 crore for Chhattisgarh, ₹3,552 crore for Assam, ₹2,597 crore for Kerala and ₹2,370 crore for Telangana.What is tax devolution?

ExplainedTax devolution refers to the distribution of a share of central tax collections among state governments, providing them with resources to finance their expenditure priorities, according to an ANI report.It said that 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.The Union Budget 2026-27 has estimated tax devolution to states at ₹15.26 lakh crore, compared with ₹13.93 lakh crore in the revised estimates for 2025-26, it added.(With inputs from Agencies)