Centre on Tuesday released the third monthly instalment of post devolution revenue deficit grant of Rs 9,871 crore to 17 states for financial year 2021-22.
"With the release of third instalment, a total amount of Rs 29,613 crore has been released in the first three months of the current financial year as post devolution revenue deficit grant to the states," the Finance Ministry said in a release.
Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal are the 17 states which have received the revenue deficit grant.
Centre provides 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 15th Finance Commission has recommended a total post devolution revenue deficit grant of Rs 1,18,452 crore to the 17 states in financial year 2021-22. The grant is released in 12 monthly instalments.
"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 the financial year 2021-22 was also taken into account by the Commission," it said.
Kerala has received the highest revenue deficit grant of Rs 4,972.74 crore in FY22 so far, followed by West Bengal (Rs 4,401.75 crore) and Andhra Pradesh (Rs 4,314.24 crore.)
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today