PDRD Grant: Ministry of Finance has recently released the monthly Post Devolution Revenue Deficit (PDRD) Grant of 9, 871 crore rupees to 17 States.
Key Highlights:
- This was the 11th installment of the PDRD grant released to the States.
- Ministry of Finance said that the grants are released to the States as per the recommendations of the 15th Finance Commission to meet the gap in Revenue Accounts of the States post-devolution.
- The Commission has recommended PDRD grants to 17 States and the same being released in equal monthly installments.
- The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of 1,18,452 crore rupees to 17 States in the financial year 2021-22.
- An amount of over one lakh 8 thousand crore rupees has been released to the eligible States so far.
- The States that have been recommended Post Devolution Revenue Deficit Grant by the Fifteenth Finance Commission are:
- Andhra Pradesh,
- Assam,
- Haryana,
- Himachal Pradesh,
- Karnataka,
- Kerala,
- Manipur,
- Meghalaya,
- Mizoram,
- Nagaland,
- Punjab,
- Rajasthan,
- Sikkim,
- Tamil Nadu,
- Tripura,
- Uttarakhand and
- West Bengal.
What are Post Devolution Revenue Deficit Grants?
- The Post Devolution Revenue Deficit Grants (PDRD) are provided to the States under Article 275 of the Constitution.
- The grants are released to the States as per the recommendations of the Fifteenth Finance Commission to meet the gap in Revenue Accounts of the States post devolution.
Purpose of the grant:
The PDRD grants are released for the following purposes:-
- To help the state governments meet the expense of the schemes,
- To promote welfare of the scheduled tribes.
- To increase the administration of scheduled areas.
- These grants aim to correct inter – state disparities and to coordinate expansion of welfare schemes of the state.
