The Centre released additional instalment of tax devolution to state governments amounting to Rs 1.09 lakh crore on Saturday, which is in addition to the normal monthly devolution to be released on 10 August, 2026.
This release is in line with the Central government’s commitment to strengthen the finances of states to accelerate their capital and developmental expenditure, according to a Finance Ministry statement.
Uttar Pradesh earned the greatest share at Rs 19,208 crore, followed by Bihar at Rs 10,845 crore and Madhya Pradesh at Rs 8,010 crore, as per the Finance Ministry’s state-by-state breakdown. Maharashtra received Rs 7,022 crore, whereas West Bengal received Rs 7,866 crore.
Among the lowest allotments on the list include Sikkim at Rs 365 crore, Goa at Rs 398 crore, and Nagaland at Rs 524 crore. Smaller states and Union Territories also received their share.
Earlier, the Union government allocated state governments an additional Rs 1,01,603 crore in tax devolution in October of last year. The regular monthly devolution, which was announced on 10 October, was supplemented by this amount.
The Ministry claims that the decision was made with the holiday season in mind, allowing states to finance their development and social welfare expenditures and accelerate capital spending.
Meanwhile, the Central government’s fiscal deficit increased to Rs 3.07 lakh crore during the first quarter of FY26-27, accounting for 18.2 per cent of the full-year target at the end of June. The fiscal deficit was around Rs 2.81 lakh crore, or 17.9 per cent of the annual Budget Estimate (BE) during the same April–June period of the previous fiscal year.
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