Under the existing devolution mechanism, 41 per cent of the Centre’s divisible tax pool is shared with states in 14 instalments during a financial year.
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The finance ministry on Saturday said the Centre has released additional instalment of tax devolution to state governments amounting to Rs 1.09 lakh crore, which is in addition to the normal monthly amount.Currently, 41 per cent of taxes collected by the Centre is devolved in 14 instalments among states during a fiscal year."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.Published on August 1, 2026
