On Wednesday, its 12th, and the final monthly revenue deficit installment grant to the states of Rs 5,194.09 has launched by the union government. According to the finance ministry statement, along with the launch of the installment, Rs 74,340 crore a whole amount has been booked to deserving states as Post Devolution Revenue Deficit Grant (PDRD) in this latest financial year.
The central government released 100% of the entire amount that is secured for 14 states of the country by its Fifteenth Finance Commission. This commission had suggested an amount of Post Devolution Revenue Deficit Grant of Rs 74,340 crore in the 2020-21 financial year.
Under Article 275 of the Constitution, the revenue deficit grants are delivered to 14 different states and are launched monthly installment schemes. According to the Fifteenth Finance Commission report’s suggestion, this scheme has opened to reach a certain gap in revenue of different states to upright the devolution.
Commission has decided the eligibility criteria of states to pursue this quantum of the grant along with this grant. It is fundamentally prepared by finding a certain gap between revenue assessment and state’s expenditure after taking into serious consideration the assessed devolution for the 2020-21 financial year.
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The commission’s report opined that the eligible states who are going to get the revenue deficit grant are- Assam, Manipur, Andhra Pradesh, Himachal Pradesh, Mizoram, Kerala, Meghalaya, Punjab, Tamil Nadu, Nagaland, West Bengal, Sikkim, and Uttarakhand.
