NEW DELHI, Feb 1: The Centre on Monday accepted the report of the Fifteenth Finance Commission (FFC) that has recommended post-devolution revenue deficit grant to Meghalaya and most other north eastern states.
Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal are recommended to be provided the deficit grants. The FFC has suggested grants amounting to Rs 1.3 trillion to state governments in eight different sectors over the next five years, officials said.
This was done as the commission focussed on grants-in-aid to the states and local bodies to ensure predictability in revenue flows at a time when the COVID-19 pandemic has severely affected tax revenues of the state governments.
Finance minister Nirmala Sitharaman presented the final report of the FFC for the five years beginning April 2022 in the Parliament along with the action taken report.
Most state governments, especially in the Northeast, go for a deficit budget since their expenditure is more than the income. This grant is expected to help them offset the deficits.
