Revenue Deficit Grant of Rs 9,871 crore Released for 17 States

GG News Bureau

New Delhi, 7th May. The Department of Expenditure of the Ministry of Finance released the second monthly installment of Revenue Deficit (PDRD) grant after the transfer of 9,871 crore to 17 states for the year 2021-22.

In the first two months of the current financial year after the release of the second tranche, revenue deficit grants have been released to the states till date after transfer of Rs 19,742 crore. States recommended for grant of revenue deficit post-transfer include Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram etc.

The 15th Finance Commission has recommended a total post development revenue deficit grant of Rs 1,18,452 to 17 states in FY 2021-22, while a total PDRD grant of Rs 74,341 crore was given to 14 states in FY 2020-21. The Center provides revenue deficit grants after transfer to states under Article 275 of the Constitution. These grants are released in monthly installments as per the recommendations of the Finance Commission to bridge the gap in revenue accounts after the transfer to the states.

For this financial year, the Center has selected 17 states for this grant. Till now, Andhra Pradesh has received 2,876.16 crore, Assam 1,062.66 crore, Haryana 22 crore, Himachal Pradesh 1,708.16 crore, Karnataka 271.84 crore, Kerala 3,315.16 crore, Punjab 1,680.16 crore, Rajasthan 1,646.34 crore, and Tamil Nadu 367.34 crore 1,295. 34 crore has been given to Uttarakhand and 2,934.5 crore to West Bengal. In the North Eastern states, a grant of 420.66 crore has been given to Manipur, 213.16 crore to Meghalaya, 298.34 crore to Mizoram, 759.5 crore to Nagaland, 113 crore to Sikkim and 757.66 crore to Tripura.