The Finance Ministry has released the fourth monthly instalment of revenue deficit grant of ₹ 9,871 crore to 17 states. With the release of this amount, the Centre has released a total of ₹ 39,484 crore to all eligible states as revenue deficit grant in the current financial year.
The 15th Finance Commission had recommended a total revenue deficit grant of Rs 1,18,452 crore to 17 states in 2021-22. Out of this, an amount of Rs. 39,484 crore or 33.33 per cent has been released so far in four installments, official sources said.
The revenue deficit or post devolution revenue deficit grant is provided to the states under Article 275 of the Constitution. 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.
The eligibility of states for receiving this grant and the quantum of grant is decided by the Finance Commission based on the gap between assessment of revenue and expenditure of the state after taking into account the assessed devolution for the financial year.
Andhra Pradesh, Assam, Haryana, Himachal Pradesh and Karnataka are among the 17 states which have received the grant.
News Source: NDTV News