The Union Government released an additional advance installment of tax devolution totaling ₹1,09,019 crore to State Governments on August 1, 2026. This release is in addition to the normal monthly devolution scheduled for August 10, 2026, and is intended to strengthen state finances and accelerate their capital and developmental expenditure.

The state-wise distribution shows Uttar Pradesh received the highest allocation at ₹19,208 crore, followed by Bihar (₹10,845 crore), West Bengal (₹7,866 crore), Madhya Pradesh (₹8,010 crore), and Maharashtra (₹7,022 crore). Other significant allocations include Rajasthan (₹6,460 crore), Odisha (₹4,819 crore), Andhra Pradesh (₹4,597 crore), Karnataka (₹4,504 crore), Gujarat (₹4,094 crore), and Tamil Nadu (₹4,466 crore).

Smaller states received proportionally lower amounts, with Goa allocated ₹398 crore, Sikkim ₹365 crore, and Nagaland ₹524 crore. The release is part of the Government of India's commitment to support state-level infrastructure and development projects through enhanced fiscal transfers.