New Delhi, Oct 10:  In a significant initiative to assist state governments during the festive period, the Union Government has allocated Rs 1,78,173 crore in tax devolution. This allocation includes an advance instalment of Rs 89,086.50 crore, in addition to the regular payment scheduled for October.

The government explained that this advance release is intended to help states increase capital spending and support welfare-related expenditures. “This release is in view of the upcoming festive season and is aimed at enabling states to accelerate their capital spending and welfare initiatives,” the statement read.

Normally, tax devolution occurs monthly, with Rs 89,086.50 crore being the standard instalment for October. However, the Union Government has decided to double the release to help states manage their finances more effectively during this crucial time.

This advance funding is expected to provide an essential boost to development projects and welfare programs across the states, ensuring they have adequate resources to enhance capital spending and address the demands of the festive season.