Centre releases revenue deficit grant of Rs 7,183.42 cr to 14 states

at 6:33 pm
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New Delhi: The central government has released the fifth installment of revenue deficit grant of Rs 7,183.42 crore to 14 states.

With the release of this installment, a total amount of Rs 28733.67 crore has been released to eligible States as Post Devolution Revenue Deficit Grant (PDRD) in the current financial year, the Ministry of Finance said in a statement today.

“The Department of Expenditure, Ministry of Finance has released 5th  monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs. 7,183.42 crore to the States on July 6, 2022,” it said.

The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs. 86,201 crores to 14 States for the financial year 2022-23.

The recommended grant is released by the Department of Expenditure to the recommended States in 12 equated monthly instalments.

With the release of the 4th instalment for the month of July 2022, the total amount of Revenue Deficit Grants released to the States in 2022-23 has gone up to Rs. 28733.67 crores, it said.

The Post Devolution Revenue Deficit Grant is provided to the States under Article 275 of the Constitution, the statement said.

The grants are released as per the recommendations of the Fifteenth Finance Commission in monthly instalments to meet the gap in Revenue Accounts of the States post-devolution.

The eligibility of States to receive this grant and the quantum of grant for the period from 2020-21 to 2025-26 was decided by the Fifteenth Commission based on the gap between the assessment of revenue and expenditure of the State after taking into account the assessed devolution during this period, the ministry said.

The States who have been recommended Post Devolution Revenue Deficit Grant by the Fifteenth Finance Commission during 2022-23 are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.