New Delhi: The Central Government has released an additional advance instalment of tax devolution to states, aimed at accelerating capital expenditure (CapEx) and supporting the timely execution of development projects across the country.
The advance release comes in addition to the regular monthly tax devolution scheduled for August 10, providing states with greater financial flexibility to undertake infrastructure development and other priority initiatives.
Under the existing fiscal framework, the Centre shares 41 per cent of the net proceeds of Union taxes and duties with the states in accordance with the recommendations of the Finance Commission. The advance instalment is intended to ensure that state governments have sufficient funds to maintain the momentum of public investment and developmental activities.
According to the state-wise allocation for August 2026, Uttar Pradesh has received the highest share 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), Gujarat (₹4,094 crore), Jharkhand (₹3,660 crore), Chhattisgarh (₹3,602 crore) and Assam (₹3,552 crore).
Among the remaining states, Kerala has been allocated ₹2,597 crore, Telangana ₹2,370 crore, Punjab ₹2,176 crore, Haryana ₹1,484 crore, Arunachal Pradesh ₹1,476 crore, Uttarakhand ₹1,244 crore, Himachal Pradesh ₹996 crore, Tripura ₹699 crore, Meghalaya ₹688 crore, Manipur ₹682 crore, Mizoram ₹615 crore, Nagaland ₹524 crore, Goa ₹398 crore and Sikkim ₹365 crore.
The Union Government said the advance release is aimed at enabling states to speed up infrastructure creation, improve public service delivery and sustain economic growth by ensuring the timely availability of financial resources for development programmes.