Central government has allocated the second monthly tranche of funds under Post Devolution Revenue Deficit (PDRD) Grant for the financial year 2021-22. The Department of Expenditure under Ministry of Finance sent Rs 9,871 crore to 17 states in this instalment.
The Centre has allocated Rs 19,742 crore in the first two months of the current fiscal as Post Devolution Revenue Deficit Grant to the states, informed the ministry on Thursday.
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 Finance Commission in monthly instalments to meet the gap in Revenue Accounts of the states post devolution.
The states recommended by the 15th Finance Commission for Post Devolution Revenue Deficit Grant include 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 FY22 was also taken into account by the Commission.
The 15th 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. The grant is to be released to these states in 12 monthly instalments.