Centre releases ₹6,195 cr to 14 States, ₹631 cr to Assam amid COVID-19 fight

Guwahati: The Centre on Tuesday released the fifth instalment of their share of revenue deficit grant, amounting to over Rs 6,000 crore, as recommended by the 15th Finance Commission. The grant had been released for 14 states – Andhra Pradesh, Kerala, Himachal Pradesh, West Bengal, Uttarakhand, Tamil Nadu, Punjab, and all northeastern states excluding Arunachal Pradesh. This is the fifth monthly instalment for the 2020-21 financial year.

"The government on August 11, 2020, released Rs 6,195.08 crore to 14 states as the fifth equated monthly instalment of the Post Devolution Revenue Deficit Grant as recommended by the 15th Finance Commission. This would provide them additional resources during the Corona crisis," Finance Minister Nirmala Sitharaman said in a tweet.

As per reports, the Centre has released the funds ahead of schedule and as a special dispensation to meet immediate funding needs of the state governments looking to restore economic activity and minimise losses to its citizens.

Kerala got the largest chunk, receiving ₹1,270 crore, followed by Himachal Pradesh, which got more than ₹950 crore. Punjab and Assam both received more than ₹630 crore.

Andhra Pradesh, Uttarakhand, West Bengal, Tamil Nadu, Nagaland, Tripura, Manipur, Mizoram, Meghalaya and Sikkim are the other recipients.

Much of this money is expected to be used by these states towards paying the salaries to their staff as sharp fall in tax collections in the months of April and May has already put pressure on the treasuries.

A similar amount was released as grant in April-July period of the current financial year.

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