Centre releases additional ₹1.09L crore tax devolution to states
What's the story
The Indian government has announced an additional tax devolution of ₹1,09,019 crore to state governments on August 1, 2026. The move is aimed at bolstering state finances and accelerating capital and developmental expenditure across the country. The release comes ahead of the regular monthly devolution scheduled for August 10, 2026.
Fiscal strategy
Significance of tax devolution for states
Tax devolution is a major fiscal transfer from the Union government to states.
This year, 41% of taxes collected by the Centre will be distributed among states in 14 installments during the fiscal year.
The additional release is intended to give states more financial resources for spending and development programs.
Allocation details
Major beneficiaries among states
Among the states, Uttar Pradesh received the highest share of ₹19,208 crore.
It was followed by Bihar (₹10,845 crore), Madhya Pradesh (₹8,010 crore), West Bengal (₹7,866 crore), and Maharashtra (₹7,022 crore).
Other major beneficiaries included Rajasthan (₹6,460 crore), Odisha (₹4,819 crore), Karnataka (₹4,504 crore), Tamil Nadu (₹4,466 crore), Gujarat (₹4,094 crore), Andhra Pradesh (₹4,597 crore), Jharkhand (₹3,660 crore), Chhattisgarh (₹3,602 crore), and Assam (₹3,552 crore).
Lesser allocations
Smaller states and Union territories
Smaller states and Union Territories received comparatively lesser amounts.
These included Himachal Pradesh (₹996 crore), Tripura (₹699 crore), Meghalaya (₹688 crore), Manipur (₹682 crore), Mizoram (₹615 crore), Nagaland (₹524 crore), Goa (₹398 crore), and Sikkim (₹365 crore).
The additional tax devolution is expected to give these regions a much-needed boost in their fiscal resources for development projects.