Finance Ministry Releases Rs 183 Cr For Tamil Nadu As Monthly Instalment Of Revenue Deficit Grant Post Devolution

As per the release from Finance Ministry on state-wise Post Devolution Revenue Deficit Grant, Tamil Nadu has received  Rs 183.67 crore as 5th monthly installment for July, 2021.

Nirmala Sitharaman, (Image: PTI)

Chennai: The Centre released a total of Rs 9,871 crore as the 5th monthly installment of Post Devolution Revenue Deficit Grant to 17 states on Monday. With the release of the current installment, the Union government has released a total of Rs 49,355 crore to eligible states in the current fiscal year 2020-2021. Of the total sanction, the Centre has released Rs 918.33 crore for Tamil Nadu in the financial year.

The Post Devolution Revenue Deficit Grant is provided to the state governments for handling fiscal deficits incurred post-devolution under Article 275 of the Constitution as per 15th Finance Commission recommendations. The eligible quantum of grant for the state was decided by the Commission with the gap between revenue assessment and state's expenditure after accounting the accessed devolution for Financial Year 2021-2022, said a release.

Across the country, 17 states including Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal are eligible for a grant in the financial year 2021-22.

As per the release from Finance Ministry on the state-wise Post Devolution Revenue Deficit Grant, Tamil Nadu has received  Rs 183.67 crore as the 5th monthly installment for July 2021. Among other southern states, Andhra Pradesh has received Rs 1,438.08 crore as the fifth installment in July 2021 and a total amount of Rs 7,190 crore for this financial year.

Kerala received Rs 1,657.58 crore as the fifth installment and till now Rs 8,287 crore for the financial year. Karnataka has received Rs 135.92 crore as the fifth installment and an overall of Rs 679.58 crore for this financial year.