Govt releases Rs 6,195 crore to 14 states

The Centre on Tuesday released Rs 6,195 crore to 14 states as the monthly instalment of post-devolution revenue deficit grant.

“The government on August 11, 2020, released Rs 6,195.08 crore to 14 states as the fifth 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.

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

The 14 states are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.

A similar amount was released as grant in April-July period of the current financial year.