The Finance Ministry has released the third monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore for the year 2021-22 to 17 states.
With the release of the instalment, a total amount of Rs 29,613 crore has been released in the first three months of the current financial year as Post Devolution Revenue Deficit Grant to the states.
The Centre provides the Post Devolution Revenue Deficit Grant to the States under Article 275 of the Constitution. The grants are released as per the recommendations of the Finance Commission in monthly installments to meet the gap in Revenue Accounts of the States post devolution.
The 15th Finance Commission has recommended Post Devolution Release Deficit grants to 17 States.
The States recommended for Post Devolution Revenue Deficit Grant are: Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.
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. Assessed devolution for the financial year 2021-22 was also taken into account by the Commission.
The 15th 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. The grant is released to the States in 12 monthly installments.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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