Govt releases Rs 9,871 cr revenue deficit grant for 17 states

10 Jun 2021 CW Team

On Tuesday, The Department of Expenditure and Ministry of Finance released the third monthly instalment of the Post Devolution Revenue Deficit (PDRD) grant of Rs 9,871 crore to 17 states in 2021-22.

With the release of the third monthly instalment, a total of Rs 29,613 crore has been released in the first three months of the current financial year (FY) as a PDRD grant to the states. State-wise grant has been released on Tuesday, and the total amount of the PDRD grant released to the states is enclosed.

Under Article 275 of the constitution, the Centre provides the PDRD grant to the states. The grants are released in monthly instalments as per the Finance Commission to meet the gap in the revenue accounts of the state post-devolution. The 15th Finance Commission recommended the PDRD grant to 17 states.

The 17 states to receive the PDRD grant are Andhra Pradesh, Himachal Pradesh, Haryana, Punjab, Rajasthan, Assam, Sikkim, Mizoram, Meghalaya, Manipur, Nagaland, Kerala, Tamil Nadu, Karnataka, Tripura, Uttrakhand, and West Bengal.

The state eligibility to receive a released grant and the quantum of the grant was decided by the commission on the basis of the gap between the revenue and expenditure of the state. The accessed devolution of FY 2021-22 was also taken into account by the Commission.

The 15th Finance Commission has also recommended the total PDRD grant of Rs 118,452 crore to 17 states in FY 2021-22. The grant is released in 12 monthly instalments to the states.

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