Centre Releases ₹7,866 Crore in Tax Devolution to West Bengal

On 1 November 2026, the Centre released ₹7,866 crore to West Bengal as its share of tax devolution. The Union Finance Ministry also announced a one-time advance instalment of ₹1,09,019 crore for all states.

Advance instalment for states

Finance Minister Nirmala Sitharaman said the advance was approved in addition to the regular monthly instalment. It was the second additional instalment in the current financial year. The Centre releases states’ shares of tax proceeds in multiple instalments each year.

Important Facts for Exams

• Transfer oversight: The Ministry of Finance’s Department of Expenditure handles most Central budgetary resources transferred to States and implements Finance Commission recommendations.
• Federal powers: India’s Constitution divides sovereign executive and legislative powers over each state’s territory between the Union and that state’s government.
• Divisible-pool exclusions: Article 270 of India’s Constitution places most Union taxes in the divisible pool; cesses and surcharges are generally excluded from states’ share.
• Vertical and horizontal shares: Finance Commission recommendations distinguish vertical devolution—the states’ aggregate share—from horizontal devolution, which allocates that share among individual states.