Finance Ministry released Rs. 6,195 crore to 14 states to fight COVID-19

The second equated monthly installment of the Post Devolution Revenue Deficit Grant to the 14 states will provide them with additional resources during the Corona crisis.

May 12, 2020 14:59 IST
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The Finance Ministry on May 11 has released Rs. 6,195 crore to 14 states to fight against the spread and the treatment of COVID-19. It is a second equated monthly installment of the Post Devolution Revenue Deficit Grant.

In an official statement released by the Financial Ministry, the grant to the 14 states will provide them with additional resources during the Corona crisis.

The 15th Finance Commission recommended this grant and the first equal installment of the grant was issued by the finance ministry to the states on March 14, 2020.

Significance of the grant to the states:

As per the Finance Ministry, the grant will help the state governments in taking preventive measures for the containment of Coronavirus.

The states who received the grants can set up quarantine facilities.

With the grant, sample collection, screening, and additional testing laboratories can also be established.

The cash-deficit states can utilize the funds to cover the cost of consumables.

The states can easily purchase the personal protection equipment (PPE) for the healthcare, police and fire authorities, municipal.

They can also get thermal scanners, ventilators, consumables, and air purifiers for the government hospitals.

Break up of the amount given to 14 states:

Andhra Pradesh- Rs. 4,91 crore

Assam- Rs. 631 crore

Himachal Pradesh- Rs. 952 crore

Kerala- Rs. 1,276 crore

Manipur- Rs. 235 crore

Meghalaya- Rs. 40 crore

Mizoram- Rs. 118 crore

Nagaland- Rs. 326 crore

Punjab- Rs. 638 crore

Tamil Nadu- Rs. 335 crore

Tripura- Rs. 269 crore

Uttarakhand- Rs. 423 crore

West Bengal- Rs. 417 crore

Sikkim- Rs. 37 crore

Background:

The first installment of the Post Devolution Revenue deficit Grant was issued on March 14, 2020. The grant is a mechanism that has been provided by the Finance Commission for compensation of any form of loss by the states from the centre. The grant forms the second-largest block of Finance Commission transfers after the assistance given to the local rural bodies.

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