She further added that long-term interest free loans will be provided to States for financing such development on matching basis.
The Ministry of Finance on Monday released the seventh monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore to the states.
With the release of this installment, a total amount of Rs 69,097 crore has been released to eligible states in the current financial year.
The Post Devolution Revenue Deficit Grant is provided to the States under Article 275 of the Constitution. The grants are released as per the recommendations of the 15th Finance Commission in monthly installments to meet the gap in Revenue Accounts of the States post devolution.
The Commission has recommended PDRD grants to 17 States during 2021-22.
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 2021-22.
The 15th Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs 1,18,452 crore to 17 States in the financial year 2021-22. Out of this, an amount of Rs 69,097.00 crore (58.33 per cent) has been released so far.
The States recommended for the PDRD 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.