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Finance Ministry releases Rs 9,871 crore as revenue deficit grant to 17 states

With the release of the second instalment, a total amount of Rs 19,742 crore has been released in the first two months of the current financial year as Post Devolution Revenue Deficit Grant to the states

  • Press Trust of India
  • Last Updated : May 6, 2021, 17:21 IST
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New Delhi: The Finance Ministry on Thursday released the second monthly instalment of revenue deficit grant of Rs 9,871 crore to 17 states.

With the release of the second instalment, a total amount of Rs 19,742 crore has been released in the first two months of the current financial year as Post Devolution Revenue Deficit Grant to the states, the ministry said in a statement.

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 instalments to meet the gap in revenue accounts of the states post-devolution.

“The Department of Expenditure, Ministry of Finance today released the 2nd monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore for the year 2021-22 to 17 States,” the statement said.

The 15th Finance Commission has recommended Post Devolution Release Deficit grants to 17 states based on the gap between the assessment of revenue and expenditure of the state.

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 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 instalments.

Published: May 6, 2021, 17:21 IST

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  • Finance Commission
  • Finance Ministry
  • Nirmala Sitharaman

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