The FY27 Budget, which marks the beginning of the new FC cycle, has not allocated any sum against these categories.
Instead, the Commission has observed that there is “significant scope of increasing revenues and rationalising expenditure” among the states. The Finance Commission has said this by citing tax revenues, committed and discretionary expenditure of states.
Under the Finance Commission Grants in the Union Budget — Grants for Health Sector, Incubation of new Cities , Grants for shared Municipal Services & Post Devolution Revenue Deficit Grants — all categories show nil outlay.
The 15th FC had recommended ₹2.94 lakh crore as post devolution revenue deficit grants for 17 states over FY22 to FY26.
“Over the five-year period Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal are being recommended to be provided the deficit grants in one year or the other,” the 15th FC had said.
Similarly, the 15th FC had recommended giving close to ₹1.30 lakh crore as sector specific grants to states in eight different sectors, like health, school education, higher education, agriculture, maintenance of PMGSY roads, aspirational districts and blocks, judiciary, statistics.
Also, state-specific grants worth ₹49,599 crore over the five-year award period were recommended by the 15th FC.
