Revenue Deficit Grant of Rs 7,183.42 core released to 14 states

The Department of Expenditure under the Ministry of Finance on June 6 released the third monthly installment 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.

States that have been recommended the PDRD 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.

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 installments. With the release of the third installment for the month of June 2022, the total amount of Revenue Deficit Grants released to the states in 2022-23 has gone up to Rs 21,550.25 crore, the ministry said in a release.

PDRD grants are provided to states by the Centre 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.

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 accounting for the assessed devolution during the period.