New Delhi: The central government has released the fifth installment of revenue deficit grant of Rs. 9,871 crore to 17 states.
With the release of this installment, a total amount of Rs. 49,355 crore has been released to eligible States as Post Devolution Revenue Deficit Grant (PDRD) in the current financial year, the Ministry of Finance said in a statement today.
“The Department of Expenditure, Ministry of Finance has released 5th monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs. 9,871 crore to the States on 9th August 2021,” it said.
The Post Devolution Revenue Deficit Grant is provided to the States under Article 275 of the Constitution, the statement said.
The grants are released as per the recommendations of the Fifteenth Finance Commission in monthly instalments to meet the gap in Revenue Accounts of the States post-devolution.
The Commission has recommended PDRD grants to 17 States during 2021-22, it said.
The eligibility of States to receive this grant and the quantum of grant was decided by the Commission based on the gap between assessment of revenue and expenditure of the State after taking into account the assessed devolution for the financial year 2021-22,
The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs. 1,18,452 crore to 17 States in the financial year 2021-22. Out of this, an amount of Rs. 49,355 crore (41.67%) has been released so far, the Ministry said.
“Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal are the states recommended for PDRD Grant by the Fifteenth Finance Commission,” it said.