Tags : Agriculture

Date : May 26, 2021

In News 

Recently, the Department of Expenditure released the 2nd monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of ?9,871 crores for the year 2021-22.

Key Points 

  • The 15th Finance Commission has recommended Post Devolution Release Deficit grants to 17 States based on the gap between the assessment of revenue and expenditure of the State.
  • It has recommended a total Post Devolution Revenue Deficit Grant of ?1,18,452 crore to 17 States in the financial year 2021-22. The grant is released to the States in 12 monthly instalments.
  • The States recommended for Post Devolution Revenue Deficit Grant are: 
    • Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.

About Post Devolution Revenue Deficit Grant 

  • The Centre provides the Post Devolution Revenue Deficit Grant to the States under Article 275 of the Constitution.
  • The grants are released as per the recommendations of the Finance Commission in monthly instalments to meet the gap in revenue accounts of the States post-devolution.
  • 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.