Centre releases Rs 1.09 lakh crore to states five days early, UP gets biggest share

New Delhi: The Centre on Thursday released ₹1.09 lakh crore to state governments as tax devolution, advancing the November instalment by five days to help states step up capital expenditure and meet development and welfare commitments during the festive season.

The instalment, normally scheduled for November 10, was released on November 5, providing states with additional liquidity to accelerate infrastructure spending and support ongoing welfare programmes. The latest transfer follows an earlier release of ₹1.09 lakh crore this month, taking the total tax devolution to states in November to ₹2.18 lakh crore.

Uttar Pradesh emerged as the biggest beneficiary, receiving ₹19,208 crore, followed by Bihar at ₹10,845 crore, Madhya Pradesh at ₹8,010 crore, West Bengal at ₹7,866 crore and Maharashtra at ₹7,022 crore. Rajasthan received ₹6,460 crore.


Among other major recipients, Odisha was allocated ₹4,819 crore, Andhra Pradesh ₹4,597 crore, Karnataka ₹4,504 crore, Tamil Nadu ₹4,466 crore and Gujarat ₹4,094 crore. The finance ministry said the advance release was intended to enable states to accelerate capital spending and finance development and welfare-related expenditure during the festive season.

According to Controller General of Accounts data, the Centre's capital expenditure stood at ₹6.55 lakh crore as of September 30, equivalent to 53.6% of the full-year budget estimate of ₹12.22 lakh crore. This compares with 51.8% of the annual target achieved during the corresponding period last year.

The Centre's fiscal deficit stood at 7.14 lakh crore at the end of September, or 42.1% of the full-year target of ₹16.96 lakh crore, against 36.5% in the year-ago period.