India’s central government is giving states a big financial boost just in time for the festive season. On Wednesday, the Finance Ministry announced an extra tax devolution of Rs 1,01,603 crore to help state governments ramp up spending on development and welfare projects.
This additional funding comes on top of the regular monthly tax share, set for release on October 10. The move aims to let states speed up capital investments during the busy holiday period, when demand for goods and services often spikes.
Uttar Pradesh, India’s most populous state, leads the pack with Rs 18,227 crore. Bihar follows close behind at Rs 10,219 crore, while Madhya Pradesh gets Rs 7,976 crore. Other top recipients include West Bengal (Rs 7,644 crore), Maharashtra (Rs 6,418 crore), and Rajasthan (Rs 6,123 crore).
Several other states also see substantial gains: Andhra Pradesh receives Rs 4,112 crore, Odisha Rs 4,601 crore, Tamil Nadu Rs 4,144 crore, Karnataka Rs 3,705 crore, and Jharkhand Rs 3,360 crore. This tax devolution supports everything from infrastructure to social programs across the country.
Looking back, the central government already transferred Rs 4,28,544 crore in tax shares to states from April to July this year. That’s Rs 61,914 crore more than the same period last year, showing a strong uptick in fiscal support.
On the revenue side, the Union government collected Rs 10,95,209 crore during those months, hitting 31.3% of its budget estimates for 2025-26. This includes Rs 6,61,812 crore in net tax revenue, Rs 4,03,608 crore from non-tax sources, and Rs 29,789 crore in non-debt capital receipts.
Spending has kept pace too. Total Union government expenditure reached Rs 15,63,625 crore in April-July, or 30.9% of the annual budget target. Of that, Rs 12,16,699 crore went to revenue needs, while Rs 3,46,926 crore funded capital projects like major infrastructure builds.
Key chunks of revenue spending covered interest payments at Rs 4,46,690 crore and subsidies totaling Rs 1,13,592 crore, helping keep essential services running smoothly. This latest tax devolution release underscores the government’s focus on steady economic growth amid festive demands.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
