The Union Ministry of Finance released the monthly Post Devolution Revenue Deficit (PDRD) Grant to several states.
On the 5th of February, Nirmala Sitharaman led the Union Finance Ministry, granted an amount of Rs. 6,195 crores.
The PDRD grant is the 11th instalment of the PDRD, which was released to the eligible 14 states. So far, over Rs. 68,145 crores have been released as PDRD under Article 275 of the Indian Constitution.
The monthly release of the PDRD grants are based on the recommendations made by the fifteenth Finance Commission. The released amount helps respective states to meet the gap in Revenue Accounts of the States post devolution.
The Finance Commission decides the eligibility
of states on the basis of the gap between assessment of revenue and expenditure of the State. The commission considers the account of the assessed devolution for the financial year 2020-2021 and allocates the grant.
The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs. 74,341 crores to 14 States in the financial year 2020-2021.
Out of the total Rs. 74,341 crores, over Rs. 68,145 crores has been released so far.
The fourteen states which would receive the PDRD grant are: Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.
Stay tuned for further updates.
