Bhubaneswar: Due to revenue surplus situation, State is missing revenue deficit grants from Centre.
Notably, State Government had opted not to borrow more and remain revenue surplus and in the process it is losing huge chunk of grants, said an analyst.
The Fifteenth Finance Commission (FFC) has recommended post devolution revenue deficit (PDRD) grants to those states, who have borrowed more and gap between revenue and expenditure exists.
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 after taking into account the assessed devolution for the financial year 2020-21.
The Fifteenth Finance Commission has recommended a total post devolution revenue deficit grant of Rs. 74,341 crore to 14 states in the 2020-21 financial year.
The Department of Expenditure, Ministry of Finance has released monthly PDRD grant of Rs. 6,195.08 crore to the states.
This was the 11th instalment of the PDRD grant released to the States. So far, an amount of Rs. 68,145.91 crore has been released to eligible states as PDRD grant in the current financial year.
The Post Devolution Revenue Deficit Grants are provided to the states under Article 275 of the Constitution. The grants are released in monthly instalments as per the recommendations of the Fifteenth Finance Commission to meet the gap in revenue accounts of the states post devolution.
The Commission has recommended PDRD grants to 14 states.
Out of this, an amount of Rs. 68,145.91 crore (91.66%) has been released so far.
The States that have been recommended PDRD grant by the Fifteenth Finance Commission are: Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal