Patna: Bihar has received Rs 10,845 crore from the Central Government as an advance instalment of its share in central taxes, providing the state with additional financial resources ahead of the regular monthly transfer due on August 10. According to the Ministry of Finance, the release is intended to strengthen states’ finances and support capital expenditure on development projects.
The additional allocation comes as Bihar is implementing several infrastructure and public welfare projects across sectors including roads, bridges, healthcare, education, irrigation and urban development. Officials said the advance transfer is separate from the state’s regular tax devolution and is expected to improve the availability of funds for ongoing schemes.
Bihar Receives the Second-Largest Share
According to the Ministry of Finance, the Centre released a total of Rs 1,09,019 crore to states as an advance transfer of tax devolution.
Uttar Pradesh received the highest allocation at Rs 19,208 crore, followed by Bihar with Rs 10,845 crore. Other major allocations included:
- Madhya Pradesh: Rs 8,010 crore
- West Bengal: Rs 7,866 crore
- Maharashtra: Rs 7,022 crore
- Rajasthan: Rs 6,460 crore
The Ministry said the advance release is aimed at enabling states to continue development works without waiting for the scheduled monthly transfer.
How Could Bihar Use the Additional Funds?
According to officials, the additional resources can support expenditure on infrastructure and public services that are already under implementation.
These include:
- Road and bridge construction
- Irrigation projects
- Hospitals and medical colleges
- Schools and educational infrastructure
- Urban development projects
- Welfare schemes
- Capital investment programmes
Officials said the advance transfer is expected to improve the state’s liquidity and help ensure timely payments for ongoing projects.
Will It Ease Bihar’s Financial Challenges?
Economists say the additional allocation is likely to improve Bihar’s short-term financial position, although it is unlikely to resolve all fiscal challenges on its own.
According to financial experts, the funds could accelerate infrastructure projects if utilised efficiently. Faster execution of roads, bridges, irrigation facilities, healthcare institutions and educational infrastructure may also support economic activity and employment generation.
However, experts noted that the long-term impact will depend on how effectively the state government allocates and spends the additional resources.
What the Centre Said
According to the Ministry of Finance, the advance tax devolution is intended to strengthen the financial capacity of states and support higher capital expenditure.
The Ministry said releasing funds ahead of schedule allows states to continue development projects without facing short-term financial constraints. It also clarified that the advance payment is in addition to, and not a replacement for, the regular monthly tax devolution.
Advance Transfers Have Been Made Before
This is not the first time the Centre has released advance tax transfers to states.
According to the Ministry of Finance, a similar advance release of Rs 1,01,603 crore was made in October 2025 with the objective of supporting development projects and welfare programmes across the country.
Commercial LPG Cylinder Prices Reduced
Separately, commercial LPG users in Bihar have received some relief following a reduction in cylinder prices.
According to the latest revision:
- The price of a 19-kg commercial LPG cylinder has been reduced by Rs 209, bringing the price down to Rs 3,032.50 from Rs 3,241.50.
- There has been no change in the price of the 14.2-kg domestic LPG cylinder, which continues to cost Rs 1,040.
