₹1,09,019 Crore Advance Tax Devolution Released to States

₹1,09,019 crore advance tax devolution released to States

Asked by UPSCPrelims 20151 PYQ

UPSC has already asked about this. Read the story with these questions in mind.

Prelims 2015With reference to the Fourteenth Finance Commission, which of the following statements is/are correct?Solve with answer

Battle Brief

The Union Government released an additional tax devolution instalment of ₹1,09,019 crore to the States on 1 August 2026, the Finance Ministry said. It comes on top of the normal monthly devolution due on 10 August. The aim is to help States speed up capital and development spending. Uttar Pradesh got the largest share, ₹19,208 crore.

Fact File

Released: 1 Aug 2026, Finance Ministry
Amount: ₹1,09,019 crore, one advance instalment
Normal instalment: still due on 10 Aug 2026
Purpose: speed up States’ capital and development spending
Largest shares: UP ₹19,208 crore; Bihar ₹10,845 crore; MP ₹8,010 crore
Smallest shares: Sikkim ₹365 crore; Goa ₹398 crore

In the news

Tax devolution to States: what happened?

States get a share of the net proceeds of Union taxes and duties every month. Releasing an extra instalment early puts cash in States’ hands when they plan capital works. The split follows the State-wise shares in the Ministry’s table.

All 28 States got a share; the table lists Net Proceeds of Union Taxes and Duties for August 2026.
Other large shares: West Bengal ₹7,866 crore, Maharashtra ₹7,022 crore, Rajasthan ₹6,460 crore.
The release ties it to the Centre’s commitment to strengthen State finances.

Back Story

How did the North-East fare?

Arunachal Pradesh ₹1,476 crore, Assam ₹3,552 crore, Manipur ₹682 crore, Meghalaya ₹688 crore, Mizoram ₹615 crore, Nagaland ₹524 crore, Tripura ₹699 crore, Sikkim ₹365 crore.

Why examiners care

Why does tax devolution to States matter?

Fiscal federalism: Front-loaded cash helps States plan spending.
Capex: Aimed at capital and development works.

Exam Radar

What can Prelims ask on tax devolution to States?

1 Aug 2026: extra devolution of ₹1,09,019 crore; normal instalment on 10 Aug.
UP got the most (₹19,208 crore); Sikkim the least (₹365 crore).

UPPCS Corner

What should UPPCS aspirants note?

Uttar Pradesh received ₹19,208 crore, the largest share among the 28 States.

How to use this in Mains

GS-III Parliament and State legislatures

As per PIB (2026-08-01): centre released an additional devolution instalment of ₹1,09,019 crore on 1 Aug 2026, besides the normal instalment due 10 Aug, to boost States' capex.
Front-loading helps States spend on capital works.

Quotable data point
Centre released an additional devolution instalment of ₹1,09,019 crore on 1 Aug 2026, besides the normal instalment due 10 Aug, to boost States' capex.
PIB: Finance: advance tax devolution, 1 Aug 2026

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

In the advance tax devolution of 1 August 2026, the largest share went to

Answer (c) & explanation

PIB (Finance), 1 Aug 2026: UP ₹19,208 crore.

Quick questions

Questions students ask about this

How much was released on 1 August 2026?

₹1,09,019 crore, as one advance instalment of tax devolution.

Which State got the most?

Uttar Pradesh, with ₹19,208 crore, followed by Bihar with ₹10,845 crore.

Is the normal instalment affected?

No. The normal monthly devolution was still to be released on 10 August 2026.