SF Prep Notes

Centre releases additional tax devolution instalment of ₹1,09,019 crore to states

The Union Government released an additional tax devolution instalment of ₹1,09,019 crore to states on 1 August 2026, over and above the normal monthly devolution due on 10 August.

Summary

The Union Government released an additional instalment of tax devolution of ₹1,09,019 crore to State Governments on 1 August 2026, in addition to the normal monthly devolution to be released on 10 August 2026. The advance is meant to help states accelerate capital and developmental spending. Uttar Pradesh received the largest share at ₹19,208 crore, followed by Bihar at ₹10,845 crore and Madhya Pradesh at ₹8,010 crore.

Key facts

Amount
₹1,09,019 crore (additional instalment)
Released
1 Aug 2026
Normal devolution
Due on 10 Aug 2026
Largest shares
UP ₹19,208 cr; Bihar ₹10,845 cr; MP ₹8,010 cr

Practice MCQs 3 questions

Q1

How much did the Union Government release to states as an additional tax devolution instalment on 1 August 2026?

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Correct answer: C — ₹1,09,019 crore

The Centre released ₹1,09,019 crore as an additional instalment, besides the normal monthly devolution due on 10 August.

Q2 Advanced

Which state received the largest share of the additional tax devolution instalment released on 1 August 2026?

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Correct answer: B — Uttar Pradesh

Uttar Pradesh received ₹19,208 crore, the largest share, followed by Bihar (₹10,845 crore).

Q3 Advanced

Consider the following statements about the tax devolution released on 1 August 2026: 1. It was in addition to the normal monthly devolution due on 10 August 2026. 2. Bihar received the highest amount among all states. Which of the above is/are correct?

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Correct answer: A — 1 only

Statement 1 is correct. Statement 2 is wrong: Uttar Pradesh received the highest amount (₹19,208 crore).

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