Govt. released Revenue Deficit Grant of Rs.7183.42 crore to 14 States

The Department of Expenditure under Ministry of Finance has released the 8th monthly instalment of 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 Post Devolution Revenue Deficit Grant to 14 States for the financial year 2022–2023 has been recommended by the Fifteenth Finance Commission at a total of Rs. 86,201 crore. The Department of Expenditure disburses the proposed amount in 12 equal monthly instalments to the suggested States. The total amount of Revenue Deficit Grants given to States in 2022–2023 has increased to Rs. 57,467.33 crore with the delivery of the 8th instalment for the month of November in 2022.

Under Article 275 of the Constitution, the Post Devolution Revenue Deficit Grants are made available to the States. According to the recommendations of the consecutive Finance Commissions, grants are given to the States in order to close the revenue account deficit left by devolution.

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 assessment of revenue and expenditure of the State after taking into account the assessed devolution during this period.

The Fifteenth Finance Commission has recommended that the following states get Post Devolution Revenue Deficit Grants in 2022–2023: Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand, and West Bengal.

State-wise details of Post Devolution Revenue Deficit Grant recommended for 2022-23 and the amount released to States as 8th instalment are as under:

State-wise Post Devolution Revenue Deficit Grant (PDRDG) Released