<h1>Centre releases extra Rs 1,01,603 crore to states on Oct 1 to boost festival spending, capital and welfare</h1> The federal government released an additional tax devolution instalment of Rs 1,01,603 crore to state governments on October 1, 2025, citing the upcoming festival season and the need to accelerate capital spending and finance development and welfare expenditures. This amount is over and above the normal monthly devolution of Rs 81,735 crore scheduled for October 10, 2025. The release was framed as consistent with cooperative federalism and the goal of national development, with 41% of centrally collected taxes devolved to states in instalments during the fiscal year.