WB Finance Minister urges Nirmala Sitharaman to release entire sum of Revenue Deficit Grant in 3 installments

West Bengal Finance Minister Amit Mitra on Monday wrote to Union Finance Minister Nirmala Sitharaman urging to release the entire sum of Revenue Deficit Grant provided by the 15th Finance Commission to the state of Rs 5,031 crores in three installments.

Mitra said the states will continue to face financial stress in a situation where revenue receipts are drying up, while the expenditure to tackle the COVID 19 crisis.

"In order to tide over this critical situation, we had made a request for advance release of the Revenue Deficit Grant provided by the 15th Finance Commission, where we urged you to release the full amount of the grant during the months of April, May and June 2020," Mitra said in the letter.

He said in the case of West Bengal, this release will amount to Rs 5,013 crores in three installments of Rs 1,671 crores, for each of the three months of April, May and June, respectively.

"But we are dismayed that the Centre has released only an amount of Rs 417 crores for the month of April, in a routine manner without taking into cognizance the unprecedented COVID-19 crisis," he added.

The state finance minister also highlighted the proposal sent by the Chief Minister to the Prime Minister of raising the FRBM limit from 3 per cent to 5 per cent for this fiscal year, 2020-21.

"May I urge that the proposals may be urgently put in place so that the State has some resources to fight the menace of COVID-19 and implement welfare measures for the people, especially poor farmers, the unorganized workers and micro and small enterprises, who among others, have been so badly impacted," Mitra added.