Overview
- The Centre released the regular November tax-devolution instalment of Rs 1,09,019 crore five days early on Thursday to give states cash ahead of Diwali and other festivals.
- Funds were allocated by the finance ministry using the standard divisible-pool shares with Uttar Pradesh getting the largest slice of Rs 19,208 crore, followed by Bihar at Rs 10,845 crore and Madhya Pradesh at Rs 8,010 crore.
- This advance is separate from identical additional transfers made on October 31 and August 1, showing a pattern of extra liquidity support to states in the current fiscal year.
- The move sits inside a new fiscal framework in which the 16th Finance Commission raised states' share of central taxes to 41% for FY27–FY31 and the Centre has budgeted about Rs 1.4 trillion in Finance Commission grants.
- Official accounts show India’s fiscal deficit for April–September at Rs 7.14 lakh crore, so the early payment will ease state cash flow but also factors into the Centre’s broader fiscal position and near-term spending choices.