<h1>Vertical share of devolution retained at 41% and Rs.1.4 lakh crore allocated to states for FY 2026-27.</h1> The Government accepted the 16th Finance Commission's recommendation to retain the vertical share of devolution at 41 percent and has allocated Rs.1.4 lakh crore to States for FY 2026-27 as Finance Commission Grants, including Rural and Urban Local Body and Disaster Management Grants; the Commission's report was submitted to the President and will be laid in Parliament with an explanatory memorandum and action taken statement under Article 281.