Finance Ministry releases revenue deficit grant worth Rs 9,871 cr to 17 states

The centre has released the fourth monthly installment of the Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore for the year 2021-22 to 17 states, it said in a release.

With the release of the installment, a total amount of Rs 39,484 crore has been released to eligible states as Post Devolution Revenue Deficit Grant. 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 15th Finance Commission in monthly installments to meet the revenue gap in Revenue Accounts of the states post devolution. The commission has recommended PDRD grants to 17 states during 2021-22.

The States recommended for PDRD Grant by the 15th Finance Commission 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 after taking into account the assessed devolution for the financial year 2021-22.