The Union Finance Ministry on Thursday released the 2nd monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore for the year 2021-22 to 17 states.
With the release of 2nd installment, a total amount of Rs 19,742 crore has been released in the first two months of the current financial year as PDRD grant to the states.
The Centre provides the grant to the states under Article 275 of the Constitution. The grants are released as per the recommendations of the Finance Commission in monthly installments to meet the gap in revenue accounts of the states post devolution. The 15th Finance Commission has recommended PDRD grants to 17 states.
These states are: Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand, and West Bengal.
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.
The Fifteenth Finance Commission has recommended a total grant of Rs 1,18,452 crore to 17 States in the financial year 2021-22. The grant is released in 12 monthly installments.