Nagaland gets INR 379.75 cr. as PDRD grant

Our Reporter
Dimapur, May 6 (EMN): Nagaland received INR 379.75 crore on Thursday as part of the second monthly instalment of Post Devolution Revenue Deficit (PDRD) grant from the department of Expenditure, Ministry of Finance.

The state has received a total of INR 759.5 crore in 2021-22 (April and May 2021) till date, according to a PIB report.

The report stated that the Ministry of Finance had released the second instalment of revenue deficit grant of INR 9,871 crore for the year 2021-22 to 17 states. With the release of the second instalment, a total amount of INR 19,742 crore has been released in the first two months of the current financial year as PDRD grant to the states, it added.

It stated that the Centre provides the PDRD grant to the states under Article 275 of the Constitution and 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 15th Finance Commission has recommended post devolution release deficit grants to 17 states.

The eligibility of states to receive this grant and the quantum of grant was decided by the 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, according to the report.

The Fifteenth 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 is released to the states in 12 monthly instalments, the report added.

PDRD grant for north-eastern states: