Centre has released the fourth instalment of revenue deficit grant to states for 2021-22The Finance Ministry has released the fourth monthly instalment of revenue deficit grant of Rs 9,871 crore to 17 states.
With the release of this amount, the Centre has released a total of Rs 39,484 crore to all eligible states as revenue deficit grant in the current financial year.The 15thFinance Commission hadrecommended a total revenuedeficit grant of Rs1,18,452 crore to 17 states in 2021-22.Out of this, an amount of Rs.39,484crore or 33.33 per centhas been released so far in fourinstallments, official sources said.The revenue deficit or post devolution revenue deficit grant is provided to the states under Article 275 of the Constitution.
The grants are released as per the recommendations of the 15thFinance Commission in monthly installments to meet the gap in revenue accounts of the states post devolution.The eligibility of states for receiving this grant and the quantum of grant is decided by the Finance 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.Andhra Pradesh, Assam, Haryana, Himachal Pradesh andKarnataka are among the 17 states which have received the grant.