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Which state received the highest allocation of тВ╣19,208 crore in the additional tax devolution instalment released by the Union government?
Bihar
Madhya Pradesh
Uttarakhand
Uttar Pradesh
Uttar Pradesh
The Union government released an additional tax devolution of 1.09 lakh crore to states in August 2026, with Uttar Pradesh receiving the highest allocation of 19,208 crore.
The Union government released an additional instalment of tax devolution on August 1, 2026, which is separate from the regular monthly devolution scheduled for August 10, 2026. This initiative is designed to bolster the financial liquidity of state governments, enabling them to accelerate capital expenditure and developmental projects. The release was facilitated by robust economic performance, notably GST collections exceeding 2.11 lakh crore in July 2026. This practice of advance devolution is a strategic tool used by the Centre to ensure balanced fiscal health across states during the fiscal year.
Total additional tax devolution amount: 1,09,019 crore
Release date: August 1, 2026
Top recipient state: Uttar Pradesh (19,208 crore)
July 2026 GST collection milestone: 2.11 lakh crore
D is correct тАФ Uttar Pradesh received the highest share of 19,208 crore from the additional 1.09 lakh crore tax devolution released by the Centre on August 1, 2026.
Remember that tax devolution is governed by the Finance Commission recommendations under Article 280 of the Indian Constitution; UP historically receives the highest share due to the horizontal devolution formula which heavily weights population.
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