Finance Min releases third instalment of revenue deficit

New Delhi June 10 dmanewsdesk: The Finance Ministry on Wednesday said it has released third monthly instalment of revenue deficit grant of `9,871 crore to 17 States.

With the release of this instalment, total `29,613 crore has  been released in the first three months of the current financial  year as Post Devolution Revenue Deficit Grant to States.

“The Department of Expenditure on Tuesday released the 3rd monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of `9,871 crore for the year 2021-22 to 17 States,” the ministry said in a statement.

The Centre provides PDRD grant to 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 states post devolution.

The 15th Finance Commission has recommended PDRD grants to 17 states — 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 financial year 2021-22 was also taken into account by the Commission.

The 15th Finance Commission has recommended total PDRD grant of `1,18,452 crore to 17 States in 2021-22. The grant is released to States in 12 monthly instalments.

Source: PTI