Tripura has received Rs 368 crore as the second monthly installment of the Post Devolution Revenue Deficit grant from the Finance Ministry as per the recommendation of the 15th Finance Commission.
The installment – that comes to more than Rs 7,000 crore has been released to 14 states that include all the North East states except Arunachal Pradesh. Total amount of the release under the PDRD has now stood at Rs 14,366 crore, official sources said.
The Finance Commission recommended for the grant for 14 states Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.
The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs 86, 201 crore to these states. The Department of Expenditure will release the grants to these states in 12 equated monthly installments.
The 15th Finance Commission has recommended post-devolution revenue deficit grants amounting to about Rs. 3 trillion over the five-year period ending FY26. It has also recommended maintaining the vertical devolution at 41% – the same as in its interim report for 2020-21.
It is at the same level of 42% of the divisible pool as recommended by the 14th Finance Commission.It has made the required adjustment of about 1% due to the changed status of the erstwhile State of Jammu and Kashmir into the new Union Territories of Ladakh and Jammu and Kashmir.
For horizontal devolution, the Finance Commission has suggested 12.5% weightage to demographic performance, 45% to income, 15% each to population and area, 10% to forest and ecology and 2.5% to tax and fiscal efforts.
Total 15th Finance Commission transfers (devolution+ grants) constitutes about 34% of estimated Gross Revenue Receipts to the Union, leaving adequate fiscal space to meet its resource requirements and spending obligations on national development priorities.
Apart from the there are also Grants to Local Governments. Along with grants for municipal services and local government bodies, it includes performance-based grants for incubation of new cities and health grants to local governments. In grants for Urban local bodies, basic grants are proposed only for cities/towns having a population of less than a million. For Million-Plus cities, 100% of the grants are performance-linked through the Million-Plus Cities Challenge Fund (MCF). The MCF amount is linked to the performance of these cities in improving their air quality and meeting the service level benchmarks for urban drinking water supply, sanitation and solid waste management.
