Tax Devolution: The central government has released an additional installment of ₹1.09 lakh crore to the states under tax sharing. Let's explore how this will help the states with development work and essential expenditures.
States received an additional installment of Rs 1.09 lakh crore
Central Government Funds: The central government has announced major relief to some states ahead of the festive season. The Finance Ministry has transferred an additional installment of ₹1.09 lakh crore to the accounts of some states under tax sharing. This amount is in addition to the normal monthly amount. This will significantly help states in completing their planning, development projects, and other essential expenses.
The central government has released an additional installment of tax sharing to the states today, August 1, 2026. This amount is separate from the regular monthly installment due on August 10.
What is tax sharing?
According to the Finance Ministry, 41% of the total tax revenue collected by the central government is allocated to the states. This amount is disbursed to the states in 14 installments throughout the financial year. This will provide states with additional funds for their programs and ahead of festivals, allowing them to better manage their expenses.
Which states got how much money?
Uttar Pradesh received the largest amount in this additional installment, while other major states also received significant amounts.
- Uttar Pradesh: Around Rs 19,208 crore
- Bihar: Around Rs 10,845 crore
- Madhya Pradesh: Around Rs 8,010 crore
- West Bengal: Around Rs 7,866 crore
- Maharashtra: Around Rs 7,022 crore
Why did the states get extra money?
This additional funding from the central government is designed to strengthen the states' financial positions. Furthermore, this scheme can prove to be very helpful for meeting increased expenses during festivals, health, education, infrastructure, and government schemes.
