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

Union Budget 2026" The Budget proposes to maintain states' share of central taxes at 41 percent for the next five years. This aligns with Finance Commission recommendations. The Centre will provide 1.40 lakh crore rupees as grants to states for FY27. This decision follows consultations with states, some of whom sought a higher tax share.