The union government on Wednesday released the twelfth and final monthly installment of revenue deficit grant of Rs 6,194.09 crore to 14 states.
With the release of this installment, a total amount of Rs 74,340 crore has been released to eligible states as Post Devolution Revenue Deficit (PDRD) Grant in the current financial year, the ministry said in a statement.
The Post Devolution Revenue Deficit Grants are released in monthly installments 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 14 states.
The eligibility of states to receive this grant and the quantum of the 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 2020-21, the ministry added. The Fifteenth Finance Commission had recommended a total Post Devolution Revenue Deficit Grant of Rs 74,340 crore to 14 States in the financial year 2020-21.
The states who have been recommended Post Devolution Revenue Deficit Grant by the Fifteenth Finance Commission include Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand.
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