Centre Releases ₹1.09 Lakh Crore Advance Tax Devolution to States to Boost Development
The Union Government has released an advance tax devolution of ₹1,09,019 crore to State Governments on August 1, 2026, to strengthen state finances and accelerate capital investment and developmental projects across the country.
Centre Releases ₹1.09 Lakh Crore Advance Tax Devolution to States to Boost Development
CNB WORLD TIMES
The Union Government has released an advance instalment of ₹1,09,019 crore to State Governments as tax devolution on August 1, 2026, to strengthen the financial position of states and support faster implementation of capital and developmental projects across the country.
The amount has been released as an additional instalment, over and above the regular monthly tax devolution that is scheduled to be released on August 10, 2026. The move reflects the Government of India's continued commitment to providing timely financial assistance to states for infrastructure development, public welfare programmes and economic growth.
According to the government, the advance release will enable states to meet their financial requirements, improve cash flow, and accelerate expenditure on priority sectors such as infrastructure, education, healthcare, rural development and other public services.
State-wise Tax Devolution for August 2026
The highest allocation has been made to Uttar Pradesh, which received ₹19,208 crore, followed by Bihar (₹10,845 crore), Madhya Pradesh (₹8,010 crore), West Bengal (₹7,866 crore), Maharashtra (₹7,022 crore) and Rajasthan (₹6,460 crore).
Among the southern states, Andhra Pradesh received ₹4,597 crore, Karnataka ₹4,504 crore, Tamil Nadu ₹4,466 crore, Kerala ₹2,597 crore, and Telangana ₹2,370 crore.
Odisha has been allocated ₹4,819 crore, while Chhattisgarh received ₹3,602 crore, Jharkhand ₹3,660 crore, Assam ₹3,552 crore, and Gujarat ₹4,094 crore.
Smaller states and northeastern states also received allocations, including Arunachal Pradesh (₹1,476 crore), Manipur (₹682 crore), Meghalaya (₹688 crore), Mizoram (₹615 crore), Nagaland (₹524 crore), Tripura (₹699 crore) and Sikkim (₹365 crore).
The government stated that the advance tax devolution is aimed at ensuring that states have adequate financial resources to undertake development initiatives, enhance public infrastructure and maintain the momentum of economic growth across the country.
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