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The Union Government released an additional instalment of tax devolution amounting to INR 1,09,019 crore to state governments on 1 August 2026, over and above the normal monthly devolution scheduled for 10 August 2026. The release was described as part of the government's commitment to strengthening state finances to accelerate capital and developmental expenditure. Uttar Pradesh received the largest allocation at INR 19,208 crore, followed by Bihar at INR 10,845 crore and Madhya Pradesh at INR 8,010 crore. The distribution covered all 28 states under the net proceeds of Union taxes and duties for August 2026.
The Union Government released an additional instalment of tax devolution to state governments amounting to INR 1,09,019 crore on 1 August 2026, the Ministry of Finance said, in a move aimed at accelerating states' capital and developmental expenditure. The release is in addition to the normal monthly devolution due to states on 10 August 2026.
According to the ministry, the advance instalment is in line with the Union Government's commitment to strengthening state finances to support capital and developmental spending. The release forms part of the state-wise distribution of net proceeds of Union taxes and duties for August 2026.
Among the states, Uttar Pradesh received the highest allocation at INR 19,208 crore, followed by Bihar at INR 10,845 crore and Madhya Pradesh at INR 8,010 crore. West Bengal received INR 7,866 crore, while Maharashtra was allocated INR 7,022 crore. Rajasthan received INR 6,460 crore under the instalment.
Other states receiving allocations above INR 4,000 crore included Odisha at INR 4,819 crore, Andhra Pradesh at INR 4,597 crore, Karnataka at INR 4,504 crore, Tamil Nadu at INR 4,466 crore, and Gujarat at INR 4,094 crore. Jharkhand received INR 3,660 crore, Chhattisgarh INR 3,602 crore, and Assam INR 3,552 crore.
Among the north-eastern and smaller states, allocations included INR 2,597 crore for Keralam, INR 2,370 crore for Telangana, and INR 2,176 crore for Punjab. Haryana received INR 1,484 crore, Arunachal Pradesh INR 1,476 crore, and Uttarakhand INR 1,244 crore. Himachal Pradesh was allocated INR 996 crore.
Smaller allocations under the instalment included INR 699 crore for Tripura, INR 688 crore for Meghalaya, INR 682 crore for Manipur, INR 615 crore for Mizoram, INR 524 crore for Nagaland, INR 398 crore for Goa, and INR 365 crore for Sikkim, the lowest allocation among the 28 states listed.
The release did not specify the criteria used to determine individual state allocations beyond the standard net proceeds distribution formula for Union taxes and duties, nor did it detail how states are expected to utilise the additional funds for capital and developmental expenditure.
Source: PIB