Rs 6,195.08 crore released to 14 states as the sixth equated monthly instalment of the Post Devolution Revenue Deficit Grant
Kohima: The Central government released Rs 6,195.08 crore to 14 states as the sixth equated monthly instalment of the Post Devolution Revenue Deficit Grant. As recommended by the 15th Finance Commission, Nagaland received Rs 326.41 crore from the Centre.
Taking to Twitter on Friday, the office of Nirmala Sitharaman, Minister of Finance and Corporate Affairs, tweeted: "The government on September 10, 2020 released Rs 6,195.08 crore to 14 states as the sixth equated monthly instalment of the Post Devolution Revenue Deficit Grant as recommended by the 15th Finance Commission. This would provide them with additional resources during the Corona crisis".
The other states that received the instalment of the post-devolution deficit grant are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.
Earlier in June this year, Nagaland CM Neiphiu Rio had said that for the year 2020-21, the 15th Finance Commission has recommended Revenue Deficit Grant of Rs. 326.42 crore each month to the State and that the fixed amount does not change.
Receipts under the revenue deficit grant are used to meet revenue expenditure on salaries, pensions and debt servicing, and so on. “Since it is meant to meet the shortfall in expenditure relating to salaries, pensions, debt servicing, etc., there is no scope to divert this grant for other purposes as is being misunderstood by many. This grant does not fully cover shortfall in revenue expenditure, and so, a deficit in resources still remains even after this grant,” the CM had said.
The post-devolution revenue deficit grant is a mechanism of the Finance Commission through which the Centre to compensate for revenue loss incurred by states.
Nagaland has projected an annual shortfall in revenue for the financial year 2020-21 to about Rs 1,652.64 crore.