Representative image. Laurie Jones aka ljonesimages on Flickr, CC BY-SA 2.0, Wikimedia Commons
Why it matters
Every state government got a lump sum on one day, from ₹365 crore for Sikkim to ₹19,208 crore for Uttar Pradesh. It is their own share of central taxes paid early, and the finance ministry wants it spent on roads, buildings and other capital works and on development and welfare schemes during the festive months.
The Centre released ₹1,09,019 crore to the 28 state governments on Saturday, 31 October 2026, as an extra instalment of tax devolution, the Ministry of Finance said. The money comes on top of the regular monthly transfer. Uttar Pradesh got the largest amount, ₹19,208 crore, and Sikkim the smallest, ₹365 crore.
Tax devolution is the part of the Centre’s tax collections that is passed on to state governments. This is the second extra instalment of the 2026-27 financial year; the first, of the same size, went out on 1 August.
Why the Centre sent states ₹1.09 lakh crore more
In its release on PIB, the finance ministry tied the payment to the coming festive season. It said the money should let states speed up capital spending, which means building roads, schools, hospitals and other assets, and also pay for development and welfare schemes.
The release itself is short. It gives the total, the purpose and a state-wise list, and nothing more: it does not say how the states must spend the money or when the next regular instalment is due. In the Hindi version of the release, the headline calls it an advance instalment.
That word matters. According to the Press Trust of India (PTI), 41% of the taxes the Centre collects goes to the states, paid out in 14 instalments over a financial year. Business Standard noted that the government decides for itself which months get a double payment. So this tax devolution payment is the states’ own share of central taxes arriving earlier than a plain monthly schedule would bring it, rather than a separate grant.
Tax devolution by state: what each of the 28 states got
The finance ministry listed an amount for every state. The list has 28 states and no Union Territories. NewsPlainly added up the 28 figures and they match the ₹1,09,019 crore total exactly. The share column below is our own calculation.
| Rank | State | Amount (crore) | Share of total |
|---|---|---|---|
| 1 | Uttar Pradesh | ₹19,208 | 17.6% |
| 2 | Bihar | ₹10,845 | 9.9% |
| 3 | Madhya Pradesh | ₹8,010 | 7.3% |
| 4 | West Bengal | ₹7,866 | 7.2% |
| 5 | Maharashtra | ₹7,022 | 6.4% |
| 6 | Rajasthan | ₹6,460 | 5.9% |
| 7 | Odisha | ₹4,819 | 4.4% |
| 8 | Andhra Pradesh | ₹4,597 | 4.2% |
| 9 | Karnataka | ₹4,504 | 4.1% |
| 10 | Tamil Nadu | ₹4,466 | 4.1% |
| 11 | Gujarat | ₹4,094 | 3.8% |
| 12 | Jharkhand | ₹3,660 | 3.4% |
| 13 | Chhattisgarh | ₹3,602 | 3.3% |
| 14 | Assam | ₹3,552 | 3.3% |
| 15 | Kerala | ₹2,597 | 2.4% |
| 16 | Telangana | ₹2,370 | 2.2% |
| 17 | Punjab | ₹2,176 | 2.0% |
| 18 | Haryana | ₹1,484 | 1.4% |
| 19 | Arunachal Pradesh | ₹1,476 | 1.4% |
| 20 | Uttarakhand | ₹1,244 | 1.1% |
| 21 | Himachal Pradesh | ₹996 | 0.9% |
| 22 | Tripura | ₹699 | 0.6% |
| 23 | Meghalaya | ₹688 | 0.6% |
| 24 | Manipur | ₹682 | 0.6% |
| 25 | Mizoram | ₹615 | 0.6% |
| 26 | Nagaland | ₹524 | 0.5% |
| 27 | Goa | ₹398 | 0.4% |
| 28 | Sikkim | ₹365 | 0.3% |
| Total, 28 states | ₹1,09,019 | 100% |
Five states, Uttar Pradesh, Bihar, Madhya Pradesh, West Bengal and Maharashtra, take ₹52,951 crore between them, or 48.6% of the whole instalment. Business Today also put Uttar Pradesh’s share at about 17.6%.
Some comparisons from the same list stand out. Uttar Pradesh’s ₹19,208 crore is more than the five southern states put together: Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana add up to ₹18,534 crore. The eight northeastern states together receive ₹8,601 crore, about 7.9%. Uttar Pradesh’s amount is roughly 53 times Sikkim’s.
The ranking is not new: the August instalment of tax devolution was split the same way, as the next section shows.
Two extra instalments in one year: how August and October compare
The August payment was announced on 1 August 2026, ahead of the regular devolution due on 10 August, The Tribune and PTI reported at the time. It was also ₹1,09,019 crore. The state figures reported then for Uttar Pradesh, Bihar, Madhya Pradesh, Maharashtra, West Bengal, Sikkim, Goa and Nagaland (The Tribune) and Odisha (OdishaBytes) are the same as in the October list.
| Extra instalment | Date | Total | Uttar Pradesh |
|---|---|---|---|
| Festive instalment, 2025-26 | October 2025 | ₹1,01,603 crore | not in the reports read |
| First extra instalment, 2026-27 | 1 August 2026 | ₹1,09,019 crore | ₹19,208 crore |
| Second extra instalment, 2026-27 | 31 October 2026 | ₹1,09,019 crore | ₹19,208 crore |
Put together, the two extra instalments of this financial year come to ₹2,18,038 crore, NewsPlainly’s calculation. For Uttar Pradesh alone that is ₹38,416 crore over the two payments. Compared with the ₹1,01,603 crore festive instalment of October 2025, this year’s October payment is ₹7,416 crore, or about 7.3%, larger.
Last year’s festive payment also came in October, on top of the regular instalment of 10 October, according to The Tribune. This year’s came on the last day of the month.
What extra tax devolution to states means for their budgets
Each state receives its whole amount in one transfer. Karnataka’s ₹4,504 crore, for example, came on 31 October, The Hindu reported. The ministry’s stated aim is that states spend more on capital works and on development and welfare during the festive season. The release sets no conditions on how the money is used, and it does not ask states to report back on it.
The finance ministry also revised the windfall tax on fuel exports on the same day.
What to watch next
The next regular monthly tax devolution will follow the usual schedule; the release read for this article does not give its date or amount. Two extra instalments have now been paid in 2026-27, in August and October.
Spending decisions now sit with the 28 state governments and their own budgets.
Frequently asked questions
What is tax devolution?
It is the states' share of taxes collected by the Centre. According to PTI, 41% of these taxes go to the states, paid in 14 instalments a year.
How much did each state get on 31 October 2026?
Uttar Pradesh got ₹19,208 crore, Bihar ₹10,845 crore, Madhya Pradesh ₹8,010 crore, West Bengal ₹7,866 crore and Maharashtra ₹7,022 crore. The full list of 28 states is in the table in this article.
How much did Karnataka get?
Karnataka received ₹4,504 crore, about 4.1% of the ₹1,09,019 crore total.
Is this new money for states?
The finance ministry's Hindi release calls it an advance instalment. It is part of the states' share of central taxes, paid on top of the regular monthly transfer, not a separate grant.