The Finance Ministry on Wednesday, June 9, 2021, has released the third monthly installment of the Post Devolution Revenue Deficit (PDRD) grant of Rs 9,871 crore for the year 2021-22 to 17 states.
A total of Rs 29,613 crore has been released as a Post Devolution Revenue Deficit Grant to the states in the first three months of the current financial year with the release of the installment, according to a statement issued by the Finance Ministry on Wednesday.
The Centre provides Post Devolution Revenue Deficit Grant to the states under Article 275 of the Constitution. Grants are released as per the recommendations of the Finance Commission in monthly installments to bridge the gap in the 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 17 states. States recommended for Post Devolution Revenue Deficit Grant include Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand, and West Bengal.
The eligibility of the states to receive this grant and the quantum of the grant was decided by the Commission, based on the difference between the revenue and expenditure of the state. The transfer scheduled for the financial year 2021-22 by the Commission was also taken into account.
The grant was released to the states in 12 monthly installments.