The grant had been released for 14 states including Andhra Pradesh, Kerala, Himachal Pradesh, West Bengal, Uttarakhand, Tamil Nadu, Punjab, Sikkim and six North Eastern states excluding Arunachal Pradesh.

 

"The government on June 10, 2020 released Rs 6,195.08 crore to 14 states as the third equated monthly instalment of the Post Devolution Revenue Deficit Grant as recommended by the 15th Finance Commission. This would provide them additional resources during the Corona crisis," Nirmala Sitharaman's office said in a tweet.

 

The money has been released ahead of schedule and as a special dispensation to meet immediate funding needs of the state governments looking to restore economic activity and minimise losses to its citizens due to disruptions caused by lockdowns.

 

Of the 14 states, the maximum grant-in-aid has gone to Kerala -- an amount of 1,277 crore followed by Himachal Pradesh with revenue deficit grant of Rs 953 crore.

 

Much of this money is expected to be used by states towards paying the salaries to their staff as sharp fall in tax collections in April has already put pressure on their accounts.