Overview

• The Finance Ministry released an advance instalment of Rs 1,01,603 crore on October 1, in addition to the regular devolution scheduled for October 10.
• The release is intended to support faster capital expenditure and welfare programmes at the state level.
• Uttar Pradesh received Rs 18,227 crore and Bihar Rs 10,219 crore, with Madhya Pradesh at Rs 7,976 crore, West Bengal at Rs 7,644 crore, and Maharashtra at Rs 6,418 crore.
• Tax devolution follows the 15th Finance Commission formula that assigns states 41% of central tax revenue excluding surcharges.
• Coverage places the move alongside the GST slab consolidation to 5% and 18% and the H2 FY26 borrowing plan of Rs 6.77 lakh crore including Rs 10,000 crore in sovereign green bonds.