Major relief for cash-starved states

In a major relief for cashstarved Andhra Pradesh, the Centre has released

`1,050.91 crore to the state `491.41 crore as revenue deficit grant and `559.50 crore under the State Disaster Response Fund (SDRF). Telangana state has received `224.50 crore under the SDRF.

The Centre had last month released `1,300 crore to AP as arrears for local bodies. With this, within a month, the Centre has released `2,350.91 crore to Andhra Pradesh.

The Centre has released

`17,287.08 crore under SDRF and revenue deficit grant to various state governments for dealing with

Covid-19. Of this, `6,157.74 crore has gone as revenue deficit grant to 14 states as per recommendations of the 15th Finance Commission.

Union finance department director Bhartendu Kumar Singh in his orders said the revenue deficit grant funds are for April

2020. Kerala has got the highest funds under this category at `1,276 crore, followed by Himachal Pradesh `952 crore, Punjab

`638 crore, Assam `631 crore, AP `491 crore, Uttarakhand `423 crore and West Bengal `417 crore.

The Centre also released

`11,092 crore in advance under SDRF, according to the Union home affairs ministry.

These funds are to be utilised by states for setting up quarantine facilities, collection and screening of samples, setting up of additional testing laboratories, towards cost of consumables, and purchase of personal protection equipment (PPE) for healthcare, municipal, police and fire authorities, besides purchase of thermal scanners, ventilators, air purifiers and consumables for government hospitals.

The home ministry said the SDRF could also be used for providing food and shelter to homeless, including migrant labourers stranded due to the lockdown in various states.