New Delhi: The Centre has released an additional ₹1,09,019 crore in tax devolution to states to strengthen their financial position and accelerate capital and development expenditure.

"The Union government has released an additional instalment of tax devolution to state governments amounting to Rs 1,09,019 crore on 1st August 2026, which is in addition to the normal monthly devolution to be released on 10th August 2026," the ministry said in a statement.

Meanwhile, Kerala has been allocated ₹2,597 crore under the additional devolution, the Union Finance Ministry said on Saturday.

The ministry clarified that the amount is in addition to the regular monthly tax devolution scheduled to be released on August 10.

Uttar Pradesh received the largest allocation of ₹19,208 crore, followed by Bihar with ₹10,845 crore.

Among Kerala's neighbouring states, Tamil Nadu has been allotted ₹4,466 crore, Andhra Pradesh ₹4,597 crore, Karnataka ₹4,504 crore, and Telangana ₹2,370 crore.

The Centre said the additional release is aimed at improving the fiscal position of states and enabling them to increase spending on infrastructure and other development projects.

Tax devolution is the constitutionally mandated transfer of a share of the Centre's divisible tax pool to states, based on the recommendations of the Finance Commission. The transfers form a key source of untied revenue for states and support spending on infrastructure, social welfare and other development programmes.

The Finance Ministry said the advance release reflects the Centre's continued effort to ensure that states have adequate financial resources to sustain public investment and developmental activities.