The Finance Ministry on Wednesday released the 12th and final monthly instalment of revenue deficit grant of Rs 6,194 crore to the states.
With the release of this instalment, a total amount of Rs 74,340 crore has been released to eligible states as Post Devolution Revenue Deficit (PDRD) Grant in the current financial year, the ministry said in a statement.
The Post Devolution Revenue Deficit Grants are released in monthly instalments as per the recommendations of the Fifteenth Finance Commission to meet the gap in Revenue Accounts of the States post-devolution. The commission has recommended PDRD grants to 14 states.
The eligibility of states to receive this grant and the quantum of the grant was decided by the 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 2020-21, the ministry added.
The Fifteenth Finance Commission had recommended a total Post Devolution Revenue Deficit Grant of Rs 74,340 crore to 14 States in the financial year 2020-21. 100 percent of the amount recommended by the Commission to these 14 states has been released by the central government.