Kerala received ₹1,276.92 crore from the Post Devolution Revenue Deficit (PDRD) grant of ₹6,195.08 crore released to 14 States by the Department of Expenditure, Union Ministry of Finance, on Wednesday.
The amount is the 12th and final monthly instalment of PDRD grant of ₹6,195.08 crore released to the States on Wednesday. In the 11th instalment released in February, the State received ₹1,276.92 crore.
PDRD grants are provided under Article 275 of the Constitution as per recommendations of the 15th Finance Commission to meet the gap in Revenue Accounts of States post devolution. The Commission has recommended grants to 14 States.
Revenue gap
The eligibility for the grant and the quantum were decided by the Commission based on the gap between assessment of revenue and expenditure of the respective State after taking into account the assessed devolution for the financial year 2020-21.
The 15th Finance Commission has recommended a total PDRD grant of ₹74,341 crore to 14 States in the financial year 2020-21. With Wednesday’s instalment, the entire amount has been released to eligible States in the current fiscal.
Andhra Pradesh, Assam, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal are the other States that have received the grant.
