Centre releases additional instalment of tax devolution of ₹1.09 lakh crore to States
The Indian Finance Ministry has released an additional ₹1.09 lakh crore in tax devolution to state governments. This payment is separate from the standard monthly devolution scheduled for August 10, 2026.
Why it matters
This significant liquidity injection provides states with immediate fiscal space to manage their budgets and fund development projects.
The Finance Ministry on Saturday (August 1, 2026) said the Centre has released an 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% of taxes collected by the Centre is devolved in 14 instalments among States during a fiscal year.
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