Now Reading: Centre releases additional Rs 1.09 lakh crore tax devolution to states
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Centre releases additional Rs 1.09 lakh crore tax devolution to states
New Delhi: The Finance Ministry on Saturday released an additional instalment of tax devolution to state governments amounting to Rs 1.09 lakh crore. This is over and above the normal monthly devolution…
The Story in Brief
New Delhi: The Finance Ministry on Saturday released an additional instalment of tax devolution to state governments amounting to Rs 1.09 lakh crore. This is over and above the normal monthly devolution due on August 10. The Centre currently devolves 41% of its tax collections to states in 14 instalments each fiscal year. The ministry announced the move in a statement on August 1, 2026. The amount is Rs 1,09,019 crore.
The Indian Opinion
Some may see this extra release as a pre-election sweetener, but the timing is consistent with previous years' practice of front-loading devolution. Others might argue the amount is too small to matter, but for cash-strapped states it provides immediate relief. The real test will be whether this additional liquidity translates into better capital spending by states, or if it merely covers revenue shortfalls.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
