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

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 15^th 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.