Centre releases Rs 135 crore in revenue deficit grant to Karnataka

The Union Ministry of Finance on Thursday released the second monthly instalment of revenue deficit grant Rs 135.92 crore to Karnataka.

With the release of the second instalment, a total amount of Rs 271.84 crore has been released in the first two months of the current financial year as Post Devolution Revenue Deficit Grant to the states, the ministry said in a statement.

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The Centre provides the Post Devolution Revenue Deficit Grant to the states under Article 275 of the Constitution.

The grants are released as per the recommendations of the Finance Commission in monthly instalments to meet the gap in revenue accounts of the states post-devolution.

Karnataka among 17 states in the country gets grants from the Ministry of Finance as Post Devolution Revenue Deficit Grant to the states, the ministry said in a statement.