New Delhi: The Central government on Friday released an additional ₹1.09 lakh crore as tax devolution to states, ahead of the regular monthly transfer due on August 10, to strengthen state finances and support capital expenditure, development projects and welfare programmes.
According to the Union Finance Ministry, the ₹1,09,019 crore release is over and above the normal monthly devolution and is aimed at helping states accelerate infrastructure projects and meet expenditure requirements.
Uttar Pradesh gets highest share, Andhra Pradesh receives ₹4,597 crore
Among the states, Uttar Pradesh received the highest allocation of ₹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).
Other major allocations include Odisha (₹4,819 crore), Andhra Pradesh (₹4,597 crore), Karnataka (₹4,504 crore), Tamil Nadu (₹4,466 crore) and Jharkhand (₹3,660 crore).
The Centre said the advance release reflects its commitment to strengthening state finances and enabling governments to speed up developmental and capital expenditure.
A similar additional tax devolution of ₹1,01,603 crore was released in October last year ahead of the festive season to help states finance infrastructure and welfare initiatives.
Meanwhile, data released by the Controller General of Accounts (CGA) showed that the Centre’s fiscal deficit stood at ₹3.1 lakh crore during the April to June quarter of FY2026-27, accounting for 18.2% of the full-year Budget estimate.
The fiscal deficit was higher than the ₹2.8 lakh crore recorded during the corresponding period of the previous financial year. However, net tax receipts rose to ₹6.4 lakh crore during the first quarter, compared with ₹5.4 lakh crore a year earlier, indicating healthy growth in tax collections despite global economic uncertainties.
For FY2026-27, the Union government has budgeted a fiscal deficit of ₹16.96 lakh crore, equivalent to 4.3% of GDP, as part of its fiscal consolidation roadmap.
