Union Government Releases Additional ₹1.09 Lakh Crore Tax Devolution to States

The Union government has released an additional instalment of tax devolution to state governments amounting to Rs 1,09,019 crore on August 1, 2026, the finance ministry said on Saturday. This is over and above the normal monthly devolution scheduled for August 10.

"The Union government has released additional instalment of tax devolution to state governments amounting to Rs 1,09,019 crore on 1st August 2026, which is in addition to the normal monthly devolution to be released on 10th August 2026," the ministry said in a statement.

The government said the move is aimed at strengthening state finances and accelerating capital and developmental expenditure across states.

Currently, 41 per cent of taxes collected by the Centre is devolved among states in 14 instalments during a fiscal year.

State-wise break-up

According to the release, Uttar Pradesh received the highest share at Rs 19,208 crore, followed by Bihar (Rs 10,845 crore), Madhya Pradesh (Rs 8,010 crore), West Bengal (Rs 7,866 crore) and Maharashtra (Rs 7,022 crore).

Other major states received the following amounts: Rajasthan (Rs 6,460 crore), Odisha (Rs 4,819 crore), Karnataka (Rs 4,504 crore), Tamil Nadu (Rs 4,466 crore), Gujarat (Rs 4,094 crore), Andhra Pradesh (Rs 4,597 crore), Jharkhand (Rs 3,660 crore), Chhattisgarh (Rs 3,602 crore) and Assam (Rs 3,552 crore).

Among the remaining states, Kerala received Rs 2,597 crore, Telangana got Rs 2,370 crore, and Punjab was allocated Rs 2,176 crore. Haryana (Rs 1,484 crore), Arunachal Pradesh (Rs 1,476 crore) and Uttarakhand (Rs 1,244 crore) also featured among the mid-range allocations.

The smaller states and Union Territories received comparatively modest amounts: Himachal Pradesh (Rs 996 crore), Tripura (Rs 699 crore), Meghalaya (Rs 688 crore), Manipur (Rs 682 crore), Mizoram (Rs 615 crore), Nagaland (Rs 524 crore), Goa (Rs 398 crore) and Sikkim (Rs 365 crore).