The finance ministry on Thursday announced the release of Rs 9,871 crore of post-devolution revenue deficit grant to 17 states. With this release, a total amount of Rs 39,484 crore has been released to eligible states for the current fiscal year.
‘The Department of Expenditure, Ministry of Finance, has released the 4th monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore to the states yesterday,’ an official statement read.
Post-devolution revenue deficit grants are provided to the states under the Constitution’s Article 275.
The funds are distributed in monthly installments in accordance with the 15th Finance Commission’s recommendations to close the revenue gap in the governments’ accounts following devolution. The Commission has proposed that 17 states get PDRD grants in the years 2021-2022.
Considering the assessed devolution for the financial year 2021-22, the Commission determined the eligibility of states and also the quantum of the grant.
During the financial year 2021-22, the Fifteenth Finance Commission has recommended a total of Rs 1,18,452 crore as Post Devolution Revenue Deficit Grant for 17 states. So far, Rs 39,484 crore (33.33 percent) of this amount has been released in four installments.
Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand, and West Bengal are among the states recommended for this award by the 15th Finance Commission.
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