The Union government released an additional Rs 1,09,019 crore tax devolution on August 1, 2026, aiming to enhance state finances and accelerate developmental spending across India.
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.
Centre releases additional ₹1.09 lakh crore in tax devolution to state governments
Centre releases additional instalment of tax devolution of ₹1.09 lakh crore to States
Centre releases additional Rs 1,09,019 crore tax devolution to states to boost capital spending
Centre releases Rs 1.09 lakh crore to states, advances August tax devolution
Centre releases ₹2,597 crore to Kerala as ‘additional instalment’ of tax devolution to boost capital spending
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The Centre has released an additional ₹1.09 lakh crore in tax devolution to states, over and above the regular August instalment…
Centre releases ₹1.09 lakh crore additional tax devolution instalment to states, enhancing fiscal support for the current year.
The Union government released an additional Rs 1,09,019 crore tax devolution on August 1, 2026. This amount is separate from the…
The August 1 release is in addition to the regular monthly devolution due on August 10, giving states an early fiscal boost as…
Centre releases ₹2,597 crore to Kerala as additional tax devolution to enhance capital spending and boost development.
Finance Minister Nirmala Sitharaman confirms no tax devolution reduction, with ₹25.44 lakh crore set for states in 2026-27.
