The Ministry of Finance has launched Rs 6,195.08 crore to 14 states in an effort to supply extra sources amid the coronavirus disaster. The fund is launched within the identify of the sixth equated month-to-month installment of the Post Devolution Revenue Deficit Grant, beneficial by the 15th Finance Commission, the Office of Anurag Thakur, MoS, Ministry of Finance, mentioned in a tweet. Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Sikkim, Tamil Nadu, Tripura, Uttarakhand, and West Bengal are the 14 states to obtain the grant. The grant has been launched at a time when the states and the Centre are in a tussle across the promised GST compensation.
It is the second time after the April-August interval, when such grant has been issued. It is to be famous that whereas the states’ complete tax receipts (together with middle’s devolution) fell 32.1 per cent and non-tax income receipts fell 27 per cent on-year within the first quarter of FY21, it’s the grants which has helped the states to slender their fiscal deficits. The grants from the middle grew by 56 per cent throughout the first quarter of the present fiscal, mentioned the Ecoscope report by Motilal Oswal Institutional Equities.
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Meanwhile, the fiscal deficit of 14 states was 36.5 per cent of BE in Q1, which was greater than double of that within the earlier years. The fiscal deficit was round 70 per cent of BE in Kerala and Andhra Pradesh within the first quarter and greater than 50 per cent of BE in Telangana.
While the financial exercise began to rebound after the nationwide lockdown was lifted, it as soon as once more began to fall because of the rising variety of coronavirus circumstances and regional lockdowns in varied elements of the nation. India reported a document enhance of 96,550 new coronavirus circumstances on Friday, taking its tally to 45,62,414. Amid the unavailability of vaccine and the repeatedly surging variety of circumstances, each the states and the Centre are struggling to take care of their books.