This Article is From Sep 06, 2022

Centre Releases Rs 7,183 Crore As Revenue Deficit Grant To 14 States

The Department of Expenditure released the 6th monthly instalment of the Post Devolution Revenue Deficit Grant of Rs 7,183.42 crore to 14 States.

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The grant has been released as per the recommendations of the Fifteenth Finance Commission.

New Delhi:

The central government on Tuesday released Rs 7,183.42 crore as revenue deficit grant to 14 states including Andhra Pradesh, Kerala, Assam, Rajasthan and West Bengal.

The Department of Expenditure released the 6th monthly instalment of the Post Devolution Revenue Deficit (PDRD) Grant of Rs 7,183.42 crore to 14 States. The grant has been released as per the recommendations of the Fifteenth Finance Commission, the Union Ministry of Finance said in a statement.

The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs 86,201 crore 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 6th instalment for the month of September 2022, the total amount of Revenue Deficit Grants released to the States in 2022-23 has gone up to Rs 43,100.50 crore, the ministry said.

The Post Devolution Revenue Deficit Grants are provided to the States under Article 275 of the Constitution. The grants are released to the States as per the recommendations of the successive Finance Commissions to meet the gap in Revenue Accounts of the States post-devolution.

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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 Finance 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 states that 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.

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