New Delhi: The Centre on Sunday allocated nearly about Rs 72,000 crore to various states for the financial year 2024-25. The funds are distributed under several headings, including revenue deficits, disaster relief and local body grants, based on the recommendations of the 15th Finance Commission’s guidelines. Among all disbursements, the post-devolution revenue deficit grant is the highest receiver of the funds.
The Finance Commission, a constitutional entity, formulates financial recommendations, maintaining center-state relations. The allocations have mainly focussed on revenue deficits, mitigation efforts, and health sectors among others to boost state capacities. “The government has disbursed Rs 71,889 crore to states for the financial year 2024-25. This allocation follows the guidance of the 15th finance commission as part of the FinMin Year Review 2024 initiative,” the finance ministry said in its statement.
“Key allocations include Rs 18,362.25 crore under the post-devolution revenue deficit grant. Additional significant allocations include Rs 6,845.04 crore for urban local bodies, Rs 20,847.25 crore for rural local bodies, and Rs 2,894.01 crore for health sector grants. Furthermore, Rs 15,823.20 crore has been earmarked under the central share of the state disaster response fund (SDRF), with an additional Rs 1,385.45 crore under the state disaster mitigation fund,” the statement said.
To counter severe natural calamities, Rs 4,050.93 crore has been set aside, complemented by Rs 757.39 crore devoted to fire service improvements, and Rs 276.81 crore for capacity-building. “A specific Rs 646.55 crore is allocated to Chennai for urban flood mitigation,” it added.
