In view of upcoming festive season and to enable States to accelerate capital spending and development initiatives, the Union Government has released an additional tax devolution of ₹1,01,603 crore to State Governments as an advance instalment, in addition to the regular monthly devolution scheduled for 10th October 2025. The move aims to boost state-level welfare and infrastructure projects ahead of the upcoming festive season.
Who is involved: All State Governments of India are beneficiaries of this advance devolution, with allocations determined based on the statutory formula for tax sharing.
What happened: The advance release of ₹1,01,603 crore will help states finance development and welfare-related expenditure, accelerate public investment, and ensure timely delivery of citizen-centric services during the festive period.
When: The release was made on 1st October 2025, ahead of the scheduled monthly devolution on 10th October.
Where: The funds have been transferred to the treasuries of all states and union territories across India.
Why it matters: By providing early access to funds, the government enables states to enhance infrastructure, welfare schemes, and capital projects, supporting economic growth and improved public services during a period of increased demand.
State-wise allocations (₹ crore):
[Andhra Pradesh – 4,112], [Arunachal Pradesh – 1,785], [Assam – 3,178], [Bihar – 10,219] , [Chhattisgarh – 3,462], [Goa – 392], [Gujarat – 3,534], [Haryana – 1,111]
[Himachal Pradesh – 843], [Jharkhand – 3,360], [Karnataka – 3,705], [Kerala – 1,956], [Madhya Pradesh – 7,976] , [Maharashtra – 6,418], [Manipur – 727],
[Meghalaya – 779], [Mizoram – 508], [Nagaland – 578], [Odisha – 4,601], [Punjab – 1,836], [Rajasthan – 6,123], [Sikkim – 394], [Tamil Nadu – 4,144], [Telangana – 2,136]
[Tripura – 719], [Uttar Pradesh – 18,227] , [Uttarakhand – 1,136], [West Bengal – 7,644]
Early access to funds allows states to smoothen capital expenditure, plan welfare schemes efficiently, and meet festive-season requirements, thereby supporting citizens and boosting economic activity at the local level.
