Centre on Thursday released Rs. 6,195.08 crore to 14 States out of which Rs. 32641.66 lakh was released to Nagaland as grants-in-aid to cover deficit on post-devolution revenue account for the period 2020-21 as recommended by the 15th Finance Commission.
Union Finance minister Nirmala Sitharaman in a tweet stated that the grant released to the States on January 7 would provide them additional resources during the Corona crisis. The grant was also released to Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal. A similar amount was released as a grant for April-November months of the current financial year.
The Finance Commission provides a mechanism for the Centre to compensate for revenue loss incurred by states, which is referred to as post-devolution revenue deficit grant.