Overview
- The Union government released an advance instalment of Rs 1,09,019 crore on Saturday to state governments to bolster capital and development spending.
- Uttar Pradesh received the largest share at Rs 19,208 crore, with Bihar and Madhya Pradesh getting Rs 10,845 crore and Rs 8,010 crore respectively and smaller states also allocated specific sums.
- The Finance Ministry said this payment is separate from and will not substitute the normal monthly tax devolution scheduled for August 10.
- Several state leaders publicly thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, saying the funds will speed up infrastructure projects, welfare delivery and local investment plans.
- The transfer follows a similar extra release in October 2025 and comes as Q1 FY27 data showed a fiscal gap of about Rs 3.1 lakh crore alongside stronger net tax receipts of Rs 6.4 lakh crore, a mix that frames the Centre's choice to front-load support for state capex.