Centre releases Rs 6,195 crore to 14 states as 3rd instalment
New Delhi, June 10 (MExN): The Ministry of Finance on Wednesday released the third instalment of states' share of revenue deficit grant amounting to over Rs 6,000 crore to 14 states, including Nagaland, providing them additional recourse to address the situation arising out COVID-19 pandemic.
Out of the overall total, Nagaland’s share was Rs 32641.66 lakh (or Rs 326.41 crore).
In April, Nagaland received an amount of Rs 263.80 crore as the April instalment of its share in central taxes and duties on April 20. The Ministry of Finance then issued sanctions for April instalment of Devolution of States' Share in Central Taxes and Duties amounting to Rs 46,038.10 crore.
On May 11, the centre also released Rs 6,195.08 crore to 14 states as the second equated monthly installment of the Post Devolution Revenue Deficit Grant as recommended by the 15th Finance Commission. Out of the total overall total, Nagaland’s share was Rs 32641.66 lakh (or Rs 326.41 crore).
The June 10 grant has been released for 14 states including Andhra Pradesh, Kerala, Himachal Pradesh, West Bengal, Uttarakhand, Tamil Nadu, Punjab, Sikkim and six North Eastern states excluding Arunachal Pradesh.
"The government on June 10, 2020 released Rs 6,195.08 crore to 14 states as the third 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's office said in a tweet.
The money has been released 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 due to disruptions caused by lockdowns, IANS reported.
Of the 14 states, the maximum grant-in-aid has gone to Kerala -- an amount of 1,277 crore followed by Himachal Pradesh with revenue deficit grant of Rs 953 crore.
Much of this money is expected to be used by states towards paying the salaries to their staff as sharp fall in tax collections in April has already put pressure on their accounts.
