Revenue deficit grant of Rs 6,194.09 cr released to 14 states

at 4:00 pm
Revenue deficit
File photo

New Delhi (NVI): The Government today released the 12th and final monthly instalment of Post Devolution Revenue Deficit (PDRD) grant of Rs 6,194.09 crore to the 14 states, the Ministry of Finance said today.

The Department of Expenditure, Ministry of Finance released this installment, under which a total amount of Rs 74,340 crore has been released to eligible states as Post Devolution Revenue Deficit Grant in the current financial year.

The Post Devolution Revenue Deficit Grants are provided to the States under Article 275 of the Constitution, the Finance Ministry said.  The grants are released in monthly instalments as per the recommendations of the Fifteenth Finance Commission to meet the gap in Revenue Accounts of the States post devolution.

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 2020-21, it said.

The Fifteenth Finance Commission had recommended a total Post Devolution Revenue Deficit Grant of Rs 74,340 crore to 14 States in the financial year 2020-21.  100% of the amount recommended by the Commission to these 14 States has been released by the central government.

The States who have been recommended Post Devolution Revenue Deficit Grant by the Fifteenth Finance Commission are: Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal, as per the ministry.