The Union Government has released an additional instalment of tax devolution worth Rs 1,09,019 crore to State Governments on August 1, 2026. This amount has been released in addition to the normal monthly tax devolution that is scheduled to be released on August 10, 2026.
What is Tax Devolution?
Under India’s tax-sharing system, the Union Government collects taxes such as income tax and corporate tax, and a prescribed portion of these revenues is distributed among the states. This distribution is called tax devolution.
Advance tax devolution does not mean that states have to repay the money like a loan. It means the Centre has released an additional/advance instalment of the states’ entitled share of central taxes to provide them with more funds immediately.
State-Wise Tax Devolution for August 2026
The Rs 1,09,019 crore released by the Union Government has been distributed among 28 states. Uttar Pradesh has received the highest amount at Rs 19,208 crore, followed by Bihar at Rs 10,845 crore and Madhya Pradesh at Rs 8,010 crore.
The complete state-wise distribution of the net proceeds of Union Taxes and Duties is given below:
| S.No. | State | Amount (Rs in crore) |
|---|---|---|
| 1 | Andhra Pradesh | 4,597 |
| 2 | Arunachal Pradesh | 1,476 |
| 3 | Assam | 3,552 |
| 4 | Bihar | 10,845 |
| 5 | Chhattisgarh | 3,602 |
| 6 | Goa | 398 |
| 7 | Gujarat | 4,094 |
| 8 | Haryana | 1,484 |
| 9 | Himachal Pradesh | 996 |
| 10 | Jharkhand | 3,660 |
| 11 | Karnataka | 4,504 |
| 12 | Kerala | 2,597 |
| 13 | Madhya Pradesh | 8,010 |
| 14 | Maharashtra | 7,022 |
| 15 | Manipur | 682 |
| 16 | Meghalaya | 688 |
| 17 | Mizoram | 615 |
| 18 | Nagaland | 524 |
| 19 | Odisha | 4,819 |
| 20 | Punjab | 2,176 |
| 21 | Rajasthan | 6,460 |
| 22 | Sikkim | 365 |
| 23 | Tamil Nadu | 4,466 |
| 24 | Telangana | 2,370 |
| 25 | Tripura | 699 |
| 26 | Uttar Pradesh | 19,208 |
| 27 | Uttarakhand | 1,244 |
| 28 | West Bengal | 7,866 |
| Total | 1,09,019 |
Uttar Pradesh Gets Highest Allocation
Among all states, Uttar Pradesh received the largest share of Rs 19,208 crore. Bihar received Rs 10,845 crore, Madhya Pradesh Rs 8,010 crore, West Bengal Rs 7,866 crore, Maharashtra Rs 7,022 crore and Rajasthan Rs 6,460 crore.
The advance tax devolution is expected to provide State Governments with additional financial resources to carry out infrastructure projects and other developmental expenditure.
