Overview
- The Centre released ₹1,09,019 crore to state governments on Saturday, Oct. 31, as an additional tax-devolution instalment that is over and above regular monthly transfers.
- Uttar Pradesh received the largest share at ₹19,208 crore, followed by Bihar at ₹10,845 crore and Madhya Pradesh at ₹8,010 crore, with a full state-wise breakup published by the Finance Ministry and PIB.
- The Ministry framed the transfer as a seasonal measure to boost state liquidity so they can accelerate infrastructure projects and meet development and welfare payments ahead of festivals.
- Official half-year data show the central fiscal deficit at ₹7.14 lakh crore or 42.1% of the full-year budget estimate, creating a trade-off between supporting state spending and managing overall public finances.
- This is the second identical discretionary instalment in FY27, a pattern that gives states short-term cash to speed spending but will be watched for effects on central fiscal room and the timing of state projects and social payments.