Centre releases ₹71,889 crore to States under various heads

The Centre has granted this fund under the National Disaster Mitigation Fund (NDMF), post-devolution revenue deficit grant, central share of the State Disaster Response Fund, State Disaster Mitigation Fund, grants to local bodies, and as additional central assistance from the National Disaster Response Fund (NDRF). In a post on the social media platform X, the Finance Ministry shared a breakdown of the funds released, with ₹18,362.25 crore allocated under the post-devolution revenue deficit grant.

The Ministry has allocated ₹6,845.04 crore under the urban local bodies grant, ₹20,847.25 crore under the rural local bodies grant, and ₹2,894.01 crore under the health sector grant. The grant under the central share of the State Disaster Response Fund stood at ₹15,823.20 crore, and ₹1,385.45 crore under the central share of the State Disaster Mitigation Fund. Under the central assistance from the National Disaster Response Fund, the Centre has allocated ₹4,050.93 crore for assistance in severe natural calamities in the States.

For the expansion and modernisation of fire services in the States, ₹757.39 crore has been granted. A total of ₹276.81 crore has been provided under the assistance for preparedness and capacity-building funding window under the NDRF. The Centre has also released ₹646.55 crore from the National Disaster Mitigation Fund for the urban flood mitigation project in Chennai city.

The Finance Commission is a constitutional body formed by the President of India to provide suggestions on Centre-State financial relations. The Finance Commission normally takes about two years to make its recommendations.

As per clause (1) of Article 280 of the Constitution, the Finance Commission is to be constituted every fifth year or earlier.