SF Prep

Centre releases additional tax devolution instalment of ₹1,09,019 crore to States; Uttar Pradesh gets the most

On 31 October 2026, the Union Government released an additional tax devolution instalment of ₹1,09,019 crore to States ahead of the festive season, the second such additional instalment this financial year, with Uttar Pradesh getting the largest share of ₹19,208 crore.

Summary

The Union Government released an additional instalment of tax devolution of ₹1,09,019 crore to State Governments on 31 October 2026, over and above the regular monthly devolution. It is the second additional instalment in the current financial year and is meant to help States speed up capital spending and fund development and welfare spending ahead of the festive season. Uttar Pradesh received the largest amount (₹19,208 crore), followed by Bihar (₹10,845 crore), Madhya Pradesh (₹8,010 crore) and West Bengal (₹7,866 crore), while Sikkim received the smallest (₹365 crore).

Key facts

Amount
₹1,09,019 crore (additional instalment)
Date
31 October 2026
Instalment
Second additional instalment of FY 2026-27, over and above regular monthly devolution
Highest
Uttar Pradesh – ₹19,208 crore
Next
Bihar ₹10,845 crore; Madhya Pradesh ₹8,010 crore; West Bengal ₹7,866 crore
Lowest
Sikkim – ₹365 crore
Purpose
Festive season; speed up capital spending and development/welfare expenditure

Practice MCQs 3 questions

Q1

How much additional tax devolution did the Union Government release to States on 31 October 2026?

Show answer

Correct answer: D — ₹1,09,019 crore

The Union Government released ₹1,09,019 crore as an additional instalment.
Q2 Advanced

Which State received the largest share of the additional tax devolution instalment released on 31 October 2026?

Show answer

Correct answer: A — Uttar Pradesh

Uttar Pradesh received the highest amount, ₹19,208 crore.
Q3 Advanced

Consider the following about the tax devolution released on 31 October 2026: 1. It was the first additional instalment of the financial year. 2. It was released in place of that month's regular devolution. Which of the statements given above is/are correct?

Show answer

Correct answer: D — Neither 1 nor 2

Neither is correct: it was the second additional instalment of the year and was in addition to the regular monthly devolution.

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