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Ahead of Diwali, Centre releases Rs. 1.01 trillion as tax devolution to states

NEW DELHI: The Union government on Wednesday announced that an additional Rs. 1,01,603 crore would be released to state governments on 1 October 2025 to support capital spending and welfare expenditures ahead of the festive season.

The Centre is releasing the funds a few days before the normal monthly devolution, which is expected to be released on 10 October 2025, days before Diwali.

“In view of upcoming festive season and to enable States to accelerate capital spending and finance their development/ welfare related expenditure, the Union Government has released an additional tax devolution of Rs. 1,01,603 crore to State Governments on 1st October, 2025, in addition to the normal monthly devolution due to be released on 10th October 2025,” the Ministry of Finance said in a statement issued on 1 October.

Uttar Pradesh will receive the highest allocation among all states, totalling Rs. 18,227 crore. Poll-bound Bihar follows as the second-highest recipient with Rs. 10, 219 crore, and Madhya Pradesh ranks third with Rs. 7,976 crore. Tamil Nadu will get Rs. 4,144 crore.

Meanwhile, Goa will get the lowest allocation at Rs. 392 crore, with Sikkim next at Rs. 394 crore.

Additional devolution to states:

Andhra Pradesh: Rs. 4,112 crore

Arunachal Pradesh: Rs. 1,785 crore

Bihar: Rs. 10,219 crore

Chhattisgarh: Rs. 3,462 crore

Goa: Rs. 392 crore

Gujarat: Rs. 3,534 crore

Haryana: Rs. 1,111 crore

Himachal Pradesh: Rs. 843 crore

Jharkhand: Rs. 3,360 crore

Karnataka: Rs. 3,705 crore

Kerala: Rs. 1,956 crore

Madhya Pradesh: Rs. 7,976 crore

Maharashtra: Rs. 6,418 crore

Manipur: Rs. 727 crore

Meghalaya: Rs. 779 crore

Mizoram: Rs. 508 crore

Nagaland: Rs. 578 crore

Odisha: Rs. 4,601 crore

Punjab: Rs. 1,836 crore

Rajasthan: Rs. 6,123 crore

Sikkim: Rs. 394 crore

Tamil Nadu: Rs. 4,144 crore

Telangana: Rs. 2,136 crore

Tripura: Rs. 719 crore

Uttar Pradesh: Rs. 18,227 crore

Uttarakhand: Rs. 1,136 crore

West Bengal: Rs. 7,644 crore

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