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DAILY · 2026-10-31

Union Government releases ₹1,09,019 crore of tax devolution to States as an additional instalment, in view of the upcoming festive season

BankingSSCGeneral

The Union Government released an additional instalment of tax devolution amounting to ₹1,09,019 crore to State Governments on 31 October 2026, in addition to the regular monthly devolution; the Ministry of Finance said it is the second additional instalment in this financial year. The release, which the Ministry's title calls one advance instalment of tax devolution, is in view of the upcoming festive season and is meant to enable States to accelerate capital spending and to finance their development and welfare related expenditure. The Ministry gave a State-wise breakup of the amount released; for example, ₹4,597 crore to Andhra Pradesh, ₹10,845 crore to Bihar, ₹19,208 crore to Uttar Pradesh and ₹7,866 crore to West Bengal.

Drafted with AI assistance from the official PIB release linked above and checked against it by a second AI pass. Not line-edited by a human.

Learning context

On 1 August 2026, too, the Union Government released an additional instalment of tax devolution of ₹1,09,019 crore to State Governments, in addition to the normal monthly devolution to be released on 10 August 2026. That release was described as in line with the Government of India's commitment to strengthen the finances of States to accelerate their capital and developmental expenditure, and its table of the 'State-wise distribution of Net Proceeds of Union Taxes and Duties for August 2026' gave, for example, ₹19,208 crore for Uttar Pradesh and ₹10,845 crore for Bihar.

Reference: PIB (Ministry of Finance), 'Union Government releases tax devolution of ₹1,09,019 crore to State Governments, as one advance instalment to accelerate their capital and developmental expenditure', 1 August 2026

Check yourself: on what date was the earlier additional instalment of ₹1,09,019 crore released, and when was that month's normal monthly devolution to be released?

On 1 August 2026; on 10 August 2026.

Revision task: from this release, note the amount, the date of release, which additional instalment of the year it is and the reasons given; from the note, the date of the August 2026 additional instalment and the reason given for it.

Test yourself

According to the Ministry of Finance, the ₹1,09,019 crore of tax devolution released to State Governments on 31 October 2026 is which additional instalment in this financial year?

  1. Second
  2. First
  3. Third
  4. Fourth
Show the answer

Answer: Second

The Union Government released ₹1,09,019 crore to State Governments on 31 October 2026 as an additional instalment of tax devolution, over and above the regular monthly devolution. It is the second additional instalment in this financial year, released in view of the upcoming festive season and to enable States to accelerate capital spending and finance development and welfare related expenditure.

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