Centre releases revenue deficit grant of INR 379.75 crore to Nagaland
Dimapur, June 9 (EMN): The Department of Expenditure, Ministry of Finance on Tuesday released an amount of INR 9,871 crore to 17 states as third monthly instalment of Post Devolution Revenue Deficit (PDRD) for the year 2021-22, taking the total amount released in the first three months (three instalments) of the current financial year to INR 29, 613 crore.
The share of Nagaland state in the third monthly instalment is INR 379.75 crore, while the total amount received in the first three months of the current financial year as PDRD is INR 1139.25 crore, according to Finance Ministry update.
The Centre provides the grant to the states under Article 275 of the Constitution and it is 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 grant was decided by the Finance Commission based on the gap between assessment of revenue and expenditure of the state. Assessed devolution for the financial year 2021-22 was also taken into account by the Commission, the report said.
The 15th Finance Commission has recommended a total PDRD grant of INR 1,18,452 crore to 17 states in the financial year 2021-22. The grant will be released to the states in 12 monthly instalments.