Finance Ministry releases 10th installment of revenue deficit grant to states

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It has been reported that The finance ministry on Thursday released monthly revenue deficit grant to 17 states totalling Rs 9,871 crore. So far, an amount of Rs 98,710 crore has been released to 17 states as post devolution revenue deficit grant in the current financial year.

“The Department of Expenditure today released monthly Post Devolution Revenue Deficit (PDRD) grant of Rs 9,871 crore to 17 states. This was the 10th instalment of the PDRD grant released to the states,” the report said.

States which received this 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 grants are released as per the recommendations of the 15th Finance Commission in monthly installments to meet the gap in revenue accounts of states post devolution.

The Commission has recommended this grant to 17 states during 2021-22, the report 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 2021-22.

“The 15th Finance Commission has recommended PDRD grant of Rs 1,18,452 crore to 17 states in financial year 2021-22. Out of this, an amount of Rs 98,710 crore (83.33 per cent ) has been released so far,” the report said. (Economic Times)