India

The Centre has released an additional ₹1.09 lakh crore in tax devolution to state governments ahead of the regular monthly instalment.Photo:X/FinMinIndia

Indian government releases additional ₹1.09 lakh crore tax devolution to states

Finance Ministry says the advance release, over and above the regular monthly instalment, will help states meet spending and development needs.

2 min read | Published - 01 Aug 2026, 04:26 pm

WRITTEN BY - PTI

New Delhi:The finance ministry on Saturday said the Union has released additional instalment of tax devolution to state governments amounting to ₹1.09 lakh crore, which is in addition to the normal monthly amount.

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

👉 Union Government releases tax devolution of ₹1,09,019 crore to State Governments, as one advance instalment to accelerate their capital and developmental expenditure

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— Ministry of Finance (@FinMinIndia) August 1, 2026

"The Union government has released additional instalment of tax devolution to state governments amounting to ₹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.