The Union government has released an additional tax devolution of Rs 1,01,603 crore to state governments. This festive season boost aims to accelerate capital spending and welfare initiatives. The Finance Ministry announced this significant move on Wednesday, enhancing states’ financial flexibility.
This extra allocation comes ahead of the normal monthly devolution scheduled for October 10. States can now fund development projects more aggressively during the festive period. The timing aligns perfectly with increased economic activity and public spending needs.
Uttar Pradesh received the highest allocation at Rs 18,227 crore. Bihar followed with Rs 10,219 crore, while Madhya Pradesh got Rs 7,976 crore. These substantial sums reflect the government’s focus on regional development.
West Bengal secured Rs 7,644 crore from the additional devolution. Maharashtra and Rajasthan received Rs 6,418 crore and Rs 6,123 crore respectively. This distribution supports varied regional requirements.
Andhra Pradesh obtained Rs 4,112 crore for its development needs. Odisha received Rs 4,601 crore, while Tamil Nadu got Rs 4,144 crore. These allocations strengthen state-level financial planning.
Karnataka and Jharkhand received Rs 3,705 crore and Rs 3,360 crore respectively. The tax devolution supports their ongoing infrastructure and social programs. This financial injection comes at a crucial economic moment.
Earlier transfers during April-July totaled Rs 4,28,544 crore. This was Rs 61,914 crore higher than the previous year’s corresponding period. The consistent increase highlights growing fiscal support.
Central government receipts reached Rs 10,95,209 crore during this period. This represents 31.3 percent of the 2025-26 budget estimates. Revenue collection remains robust across categories.
Net tax revenue contributed Rs 6,61,812 crore to the Centre. Non-tax revenue added Rs 4,03,608 crore, while non-debt capital receipts were Rs 29,789 crore. This diversified revenue stream supports the tax devolution process.
Total expenditure by the Union government stood at Rs 15,63,625 crore. This constitutes 30.9 percent of the corresponding budget estimates. Spending patterns reflect balanced fiscal management.
Revenue account spending reached Rs 12,16,699 crore. Capital account expenditure was Rs 3,46,926 crore, focused on infrastructure projects. The tax devolution complements these national investments.
Interest payments accounted for Rs 4,46,690 crore of revenue expenditure. Major subsidies totaled Rs 1,13,592 crore during the period. These commitments demonstrate the government’s financial obligations.
The additional tax devolution empowers states to enhance public services. It also stimulates local economies during the festive season. This strategic move supports holistic economic growth.
State governments now have greater resources for immediate projects. The funds will likely boost employment and community development. This tax devolution represents timely fiscal support.
Regional economies stand to benefit from this financial infusion. The allocation pattern addresses varying state requirements effectively. This approach ensures balanced regional progress.