GK and monthly revision

Union Budget 2026: Centre aims at retaining states’ tax share at 41% for 2026–31

The Union Budget 2026 proposes to maintain the states' share of central taxes at 41% for the next five years, aligning with Finance Commission recommendations. The Centre will also provide ₹1.40 lakh crore as grants to states for FY27. This decision follows consultations with states, some of whom sought a higher tax share. This move aims to ensure financial stability and autonomy for state governments, which is crucial for effective governance and public service delivery.