Centre reports ₹1.09 lakh crore tax release to states

The Finance Ministry said it released ₹1,09,019 crore to state governments on October 31 as an additional tax-devolution instalment, with Karnataka allocated ₹4,504 crore. The ministry described the release as the second additional instalment of the 2026-27 financial year, over and above regular monthly devolution. Uttar Pradesh received the largest share, at ₹19,208 crore, followed by Bihar with ₹10,845 crore and Madhya Pradesh with ₹8,010 crore. Karnataka’s allocation was the ninth-largest among the 10 highest state allocations listed in the release. The figures were attributed to the Finance Ministry. The ministry said the additional funds were intended to help states accelerate capital spending and finance development and welfare expenditure ahead of the festive season. The release provides states with funds in addition to their regular monthly tax share, but the ministry’s stated purpose does not establish how each state will spend its allocation. Finance Minister Nirmala Sitharaman said the additional release was supported by stronger economic activity and buoyant tax collections. She also said the funds would support infrastructure development, welfare programmes and...