NEW DELHI, November 6: The Union Government released ₹1,09,019 crore to the states on Thursday, November 5, as their regular monthly share of central taxes, bringing forward the instalment normally paid on November 10 because of the festive season, the Finance Ministry said. The early release is meant to help states speed up capital spending and fund development and welfare schemes.
Key highlights
- Amount: ₹1,09,019 crore released to 28 states.
- Timing: paid on November 5 instead of the usual November 10, ahead of Diwali.
- Largest shares: Uttar Pradesh ₹19,208 crore, Bihar ₹10,845 crore, Madhya Pradesh ₹8,010 crore, West Bengal ₹7,866 crore and Maharashtra ₹7,022 crore.
- Smallest shares: Sikkim ₹365 crore and Goa ₹398 crore.
| State | Amount (₹ crore) |
|---|---|
| Uttar Pradesh | 19,208 |
| Bihar | 10,845 |
| Madhya Pradesh | 8,010 |
| West Bengal | 7,866 |
| Maharashtra | 7,022 |
| Rajasthan | 6,460 |
| Odisha | 4,819 |
| Andhra Pradesh | 4,597 |
| Karnataka | 4,504 |
| Tamil Nadu | 4,466 |
| Gujarat | 4,094 |
| Jharkhand | 3,660 |
| Chhattisgarh | 3,602 |
| Assam | 3,552 |
| Keralam | 2,597 |
| Telangana | 2,370 |
| Punjab | 2,176 |
| Haryana | 1,484 |
| Arunachal Pradesh | 1,476 |
| Uttarakhand | 1,244 |
| Himachal Pradesh | 996 |
| Tripura | 699 |
| Meghalaya | 688 |
| Manipur | 682 |
| Mizoram | 615 |
| Nagaland | 524 |
| Goa | 398 |
| Sikkim | 365 |
| Total | 1,09,019 |
How tax devolution works
Under the Constitution, a share of the Centre’s net tax revenue is passed on to the states, in proportions set by the Finance Commission based on population, area, income levels and other factors. The money is released in monthly instalments, and states are free to spend it on their own priorities. Bringing an instalment forward gives states cash a few days earlier at a time of high festive spending.
Our calculation
- Uttar Pradesh receives about 17.6% of this instalment and Bihar about 9.9%; together they get more than a quarter.
- The five largest recipients (Uttar Pradesh, Bihar, Madhya Pradesh, West Bengal and Maharashtra) receive about 48.6% of the total.
- The state-wise figures in the official table add up exactly to ₹1,09,019 crore.
What it means
For states, an early instalment eases cash flow ahead of Diwali, when salaries, bonuses and welfare payments bunch up, and gives them room to keep spending on roads, schools and other capital projects. The official table also uses the name “Keralam” for the state previously listed as Kerala.
What to watch
- The December instalment and whether further advances follow.
- States’ capital spending figures for the second half of the financial year.
North Block and South Block on Raisina Hill, New Delhi. North Block houses the Ministry of Finance. Image: Ankur Panchbudhe from Pune, India, CC BY 2.0, via Wikimedia Commons. Photo source · Licence
Sources
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