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Govt Releases Rs 6,195 crore to 14 States As Revenue Deficit Grant

File photo of Finance Minister Nirmala Sitharaman. (Image Source: PTI)

File photo of Finance Minister Nirmala Sitharaman. (Image Source: PTI)

The Finance Commission provides a mechanism for the Centre to compensate for revenue loss incurred by states, which is referred to as post devolution revenue deficit grant.

New Delhi: The Centre has released Rs 6,195 crore to 14 states as monthly instalment of post devolution revenue deficit grant. "The government on September 10, 2020 released Rs 6,195.08 crore to 14 states as the sixth equated monthly instalment of the Post Devolution Revenue Deficit Grant as recommended by the 15th Finance Commission. This would provide them additional resources during the Corona crisis," the Office of Finance Minister Nirmala Sitharaman said in a tweet.

Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal are the 14 states to whom the grant has been released. A similar amount was released as grant in April-August period of the current financial year.

The Finance Commission provides a mechanism for the Centre to compensate for revenue loss incurred by states, which is referred to as post devolution revenue deficit grant.

first published:September 11, 2020, 17:06 IST