Centre releases Devolution Revenue Deficit Grant of Rs. 491.41 crore to AP for September 2020

The central government headed by prime minister Narendra Modi has released Rs 6,195 crore 14 states on Thursday under devolution revenue deficit grant for the year 2020-21 to provide the financial aid to the states to cover deficit on the post-devolution amount for the month of September 2020.

The ministry of finance has said in a statement that these grants were released on the recommendation of the 15th Finance Commission for the instalments of September 2020. As per the Finance Ministry's notification, the Centre has released payments of over Rs 491 crore to Andhra Pradesh. Apart from Andhra Pradesh, Rs 1,276 crore to Kerala, Rs 952 crore to Himachal Pradesh and over Rs 638 crore to Punjab, Rs 631 crore to Assam, Rs 423 crore to Uttarakhand, Rs 417 crore to West Bengal were sanctioned.

The Finance Commission provides financial aid to centre to compensate for any revenue loss incurred by states, which is referred to as post devolution revenue deficit grant. A similar amount was released as grant in April-July period of the current financial year.