ECONOMY & INFRASTRUCTURE
Economic Affairs
Union Government Grants Additional Tax Devolution of ₹1.09 Lakh Crore to States
The Ministry of Finance released an additional ₹1,09,019 crore in tax devolution to state governments over and above the regular monthly transfers.
This release adheres to the constitutional framework where 41% of the central divisible tax pool is distributed among states based on 15th Finance Commission recommendations.
Uttar Pradesh received the largest allocation at ₹19,208 crore, followed by Bihar at ₹10,845 crore and Madhya Pradesh at ₹8,010 crore.
Tax devolution strengthens state fiscal autonomy, aiding regional infrastructure deployment and socio-economic welfare schemes.
Exam Perspective: Understanding fiscal federalism and Finance Commission devolution percentages is vital for macroeconomics and banking awareness modules.
This release adheres to the constitutional framework where 41% of the central divisible tax pool is distributed among states based on 15th Finance Commission recommendations.
Uttar Pradesh received the largest allocation at ₹19,208 crore, followed by Bihar at ₹10,845 crore and Madhya Pradesh at ₹8,010 crore.
Tax devolution strengthens state fiscal autonomy, aiding regional infrastructure deployment and socio-economic welfare schemes.
Exam Perspective: Understanding fiscal federalism and Finance Commission devolution percentages is vital for macroeconomics and banking awareness modules.
Key Facts / Static GK
The 15th Finance Commission was headed by N.K. Singh, recommending a 41% share for states from the net proceeds of central taxes.
Practice Quiz — 4 August 2026
Q1. Who among the following was recently appointed as Executive Director of the Reserve Bank of India to oversee financial markets regulation and foreign exchange departments?
Answer: (A) Monisha Chakraborty — Monisha Chakraborty was appointed as the Executive Director (ED) of the Reserve Bank of India (RBI), where she will supervise foreign exchange and financial markets regulation.
Q2. Who has been appointed as India's next Ambassador to Iran?
Answer: (A) Vishwesh Negi — Diplomat Vishwesh Negi, who was serving as a Joint Secretary in the Ministry of External Affairs, has been designated as India's next Ambassador to Iran.
Q3. Which lake was recently declared as Arunachal Pradesh's first Ramsar site, making it the 101st Ramsar site in India?
Answer: (B) Glaw Lake — Glaw Lake in Arunachal Pradesh, situated within Kamlang Tiger Reserve and Wildlife Sanctuary, was declared a Wetland of International Importance, taking India's Ramsar site total to 101.
Q4. Which bank recently introduced 'Specialé Senior Citizen Savings Account' and 'SavingsMax Account for Women'?
Answer: (B) HDFC Bank — HDFC Bank introduced two targeted savings products—Specialé Senior Citizen Savings Account and SavingsMax Account for Women—to cater to specific customer demographics.
Q5. What is the name of the new insurance digital platform launched by Karnataka Bank in collaboration with SprintMoney?
Answer: (B) KBL Finsurance — Karnataka Bank launched 'KBL Finsurance', a platform built by fintech SprintMoney, to integrate and automate insurance offerings across all branch locations.
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