New Delhi, Feb. 1 -- The Centre has allocated Rs 1.4 lakh crores for states for the Financial Year 2026-27 as Finance Commission grants, Union Finance Minister Nirmala Sitharaman said on Sunday.

Presenting the Union Budget 2026-27, FM Sitharaman said the Centre has accepted the 16th Finance Commission's recommendation to retain the vertical share of devolution at 41 per cent.

She said, "The Government has accepted the 16th Finance Commission recommendations to retain the vertical share of devolution at 41 per cent. I have allocated Rs 1.4 lakh crores for states for FY 2026-27 as Finance Commission grants. These include rural and urban local body and disaster management grants."

The 15th Finance Commission recommended a share of states ...