Category: Business News

The Union Government released the regular monthly instalment of tax devolution of ₹1,09,019 crore to state governments on Thursday, 5 November 2026. The instalment, normally released on 10 November, was advanced by five days in view of the festive season.

The Finance Ministry said the early release is meant to help states accelerate capital spending and finance development and welfare-related expenditure during the festive period.

What Himachal gets

Himachal Pradesh was allocated ₹996 crore in this instalment. The state-wise breakup for the biggest recipients:

StateAmount
Uttar Pradesh₹19,208 crore
Bihar₹10,845 crore
Madhya Pradesh₹8,010 crore
Odisha₹4,819 crore
Andhra Pradesh₹4,597 crore
Karnataka₹4,504 crore
Tamil Nadu₹4,466 crore
Gujarat₹4,094 crore
Himachal Pradesh₹996 crore

Two big releases in five days

This is the second ₹1,09,019 crore release in less than a week. On 31 October 2026, the Centre released an additional instalment of the same amount, over and above the regular monthly devolution. That was the second additional instalment of the financial year 2026–27 (the first came on 1 August).

Together, the two releases mean states have received ₹2.18 lakh crore in just five days — a large fiscal boost ahead of Diwali.

What is tax devolution?

Tax devolution is the transfer to states of their constitutionally determined share of the divisible pool of Union taxes. The Sixteenth Finance Commission has recommended that states get 41 percent of the divisible pool. The Union Budget for 2026–27 estimates total tax devolution to states at ₹15.26 lakh crore for the year, up 9.6 percent from the revised estimate of ₹13.93 lakh crore in 2025–26.

The Centre has devolved ₹6.99 lakh crore to states in April–September, up 11 percent on the year. Including the two recent releases, about ₹10.26 lakh crore has been released so far this financial year.

For Himachal, which is spending heavily on relief, salaries and development works, the ₹996 crore arrives at a useful time — alongside the ₹400 crore the state expects from selling power to Rajasthan over the next four months.

Source: Finance Ministry release via PIB, 5 November 2026; The Hindu BusinessLine, 5 November 2026.

Related articles on HimachalGovt