Centre releases additional ₹1.09 lakh crore as tax devolution to strengthen state finances and accelerate capital expenditure

Editorial concept image depicting the Centre's tax devolution mechanism supporting state finances and capital development across India.
Centre's tax devolution mechanism supporting state finances and capital development across India. Representative image (Image Source: Google AI)

New Delhi: The Union government released an additional ₹1,09,019 crore to state governments on 1 August 2026 as an advance instalment of tax devolution, aimed at accelerating capital and developmental expenditure.

The additional allocation is over and above the normal monthly tax devolution instalment scheduled to be released on 10 August, the Ministry of Finance said.

Uttar Pradesh received the highest allocation at ₹19,208 crore, followed by Bihar at ₹10,845 crore and Madhya Pradesh at ₹8,010 crore.

West Bengal was allocated ₹7,866 crore, Maharashtra ₹7,022 crore and Rajasthan ₹6,460 crore.

Among the other major allocations, Odisha received ₹4,819 crore, Andhra Pradesh ₹4,597 crore, Karnataka ₹4,504 crore and Tamil Nadu ₹4,466 crore.

Gujarat was allocated ₹4,094 crore, while Jharkhand received ₹3,660 crore, Chhattisgarh ₹3,602 crore and Assam ₹3,552 crore.

Kerala received ₹2,597 crore, Telangana ₹2,370 crore and Punjab ₹2,176 crore.

Arunachal Pradesh was allocated ₹1,476 crore, Haryana ₹1,484 crore and Uttarakhand ₹1,244 crore. Himachal Pradesh received ₹996 crore.

Among the smaller northeastern states, Tripura received ₹699 crore, Meghalaya ₹688 crore, Manipur ₹682 crore, Mizoram ₹615 crore and Nagaland ₹524 crore.

Goa was allocated ₹398 crore, while Sikkim received ₹365 crore, the lowest allocation among the 28 states covered by the release.

The state-wise allocations together account for the entire ₹1,09,019 crore released on 1 August. The regular monthly devolution due on 10 August will be transferred separately.

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