Centre releases Rs 9,871 crore as revenue deficit grant to 17 states
New Delhi, Feb 4: The Union Ministry of Finance has released Rs. 9,871 crore to 17 States and it is the 11th installment of the PDRD grant released to the states, a statement said.
The Post Devolution Revenue Deficit Grants are provided to the States under Article 275 of the Constitution. The grants are released to the States as per the recommendations of the Fifteenth Finance Commission to meet the gap in Revenue Accounts of the States post devolution.
The Commission has recommended PDRD grants to 17 States and the same being released in equal monthly installments. 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.
The Fifteenth 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. So far, an amount of Rs. 1,08,581 crore (91.6%) has been released to eligible States as Post Devolution Revenue Deficit Grant in the current financial year, the statement said.