Union advances regular tax devolution instalment of Rs 1,09,019 crore

The Union government transferred Rs 1,09,019 crore to state governments on 5 November 2026 as the regular November instalment of tax devolution. It brought the payment forward from 10 November 2026. The purpose was to make funds available sooner so states could accelerate capital expenditure and meet development and welfare costs around the festive season. Bringing forward the instalment changed the timing of the payment.

The November transfer followed a separate additional instalment of Rs 1,09,019 crore on 31 October 2026. Because the amounts were identical, the date and type of instalment distinguish the two payments. The combined amount was Rs 2,18,038 crore. In the November state breakdown, Uttar Pradesh received Rs 19,208 crore, Bihar received Rs 10,845 crore and Madhya Pradesh received Rs 8,010 crore. These figures are the respective state allocations from that release.

Facts to remember

• Regular November instalment: Rs 1,09,019 crore released on 5 November 2026.
• Original scheduled date: 10 November 2026, so the advance was five days.
• Separate additional instalment: Rs 1,09,019 crore released on 31 October 2026.
• Largest November allocation: Uttar Pradesh, Rs 19,208 crore.

Background

Article 270 of the Constitution provides for sharing the net proceeds of specified Union taxes between the Union and states. Surcharges for Union purposes under Article 271 and cesses imposed for specific purposes are excluded from this pool. Under Article 280, the Finance Commission recommends how to divide shareable tax proceeds between the Union and states and how to allocate the states’ portion among individual states. These are distinct questions in fiscal federalism.

Why it matters for exams

For CLAT Polity, judiciary and UGC-NET Law, revise Articles 270 and 280 and distinguish tax sharing from grants and the timing of instalments.