The Union Government on Wednesday, October 1, released an advance instalment of tax devolution totaling Rs 1,01,603 crore to state governments.
Boost for Capital Spending and Welfare Ahead of Festive Season
The move is aimed at supporting states in accelerating capital spending and financing development and welfare-related expenditure, particularly as the festive season approaches. This advance comes in addition to the normal monthly devolution, which is scheduled for October 10, 2025.
“The advance release will assist States in meeting their immediate expenditure needs, especially for capital outlays and welfare commitments,” the government noted.
State-Wise Allocations Highlight Major Beneficiaries
Among the allocations, Uttar Pradesh received Rs 18,227 crore, Bihar Rs 10,219 crore, Madhya Pradesh Rs 7,976 crore, West Bengal Rs 7,644 crore, and Maharashtra Rs 6,418 crore. Other key states include Rajasthan with Rs 6,123 crore, Odisha Rs 4,601 crore, Tamil Nadu Rs 4,144 crore, Andhra Pradesh Rs 4,112 crore, and Karnataka Rs 3,705 crore.
Smaller states also received funding, with Rs 843 crore allocated to Himachal Pradesh, Rs 727 crore to Manipur, Rs 719 crore to Tripura, and Rs 394 crore to Sikkim. Goa received Rs 392 crore, while Mizoram, Nagaland, and Meghalaya received Rs 508 crore, Rs 578 crore, and Rs 779 crore, respectively.
The government emphasized that the advance release will provide states with additional flexibility to meet immediate fiscal needs, ensuring uninterrupted progress on both development projects and welfare schemes.