Centre Releases ₹1.09 Lakh Crore to States Ahead of Diwali; Uttar Pradesh Gets Highest Share

November 5, 2026

New Delhi: The Central government released ₹1,09,019 crore to state governments under regular tax devolution on Thursday, in advance of the scheduled date of November 10 on account of the festive season and Diwali.

The Finance Ministry said that the move would help states increase the pace of capital expenditure.

“In View of the forthcoming festive season and to enable States to increase the pace of capital expenditure and meet their development/welfare related expenditure, Union Government has made advance release of regular tax devolution amounting to Rs 1,09,019 crore to State Governments,” the ministry said.

Uttar Pradesh gets highest

Uttar Pradesh got the highest share of ₹19,208 crore. Bihar got ₹10,845 crore, Madhya Pradesh got ₹8,010 crore and West Bengal got ₹7,866 crore.

Other states include Maharashtra which got ₹7,022 crore and Rajasthan got ₹6,460 crore.

The release is part of regular monthly tax devolution released by the Centre to states. However, the instalment was released five days before the scheduled date to help states spend more during the festive season.

Union government releases additional installment

Last week, the Union government released an additional ₹1,09,019 crore to state governments.

In August as well a similar additional instalment was released. The Finance Ministry said that the move was to help strengthen State finances and increase capital and development expenditure.

Fiscal Deficit at 42.1 percent of target

India’s fiscal deficit in the first six months April-September stood at ₹7.14 lakh crore.

This accounts for 42.1 percent of the total budgetary estimate of ₹16.96 lakh crore in 2026-27.

Total revenue receipts of the Centre stood at ₹17.57 lakh crore during April-September period or 49.7 percent of the budget.

Out of this, net tax revenue stood at ₹12.76 lakh crore and non-tax revenue was ₹4.81 lakh crore.