New Delhi: Union Finance Minister Nirmala Sitharaman on Thursday, 8th of July, declared the fourth monthly instalment of post-devolution revenue deficit grant of Rs.9,871 crore to 17 states out of which Northeast region also comes under. With the release of this instalment, a total amount of Rs.39,484 crore has been released to eligible states in the current FY.
As per the official announcement, the Department of Expenditure, Ministry of Finance, has released the 4th monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore to the states.
Under article 275 of the constitution, the post-devolution revenue deficit grant is provided to the states. The grants are released as per the recommendations of the 15th Finance Commission in monthly instalments to meet the gap in revenue accounts of the states post-devolution, it has also recommended a total Post Devolution Revenue Deficit Grant of Rs 1,18,452 crore.
During the FY 2020-21 the commission has recommended PDRD grants to 17 states. Recommended states for this grant by the 15th finance Commission are Andhara Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.