Revenue Deficit Grant of Rs.7,183.42 crore released to 14 States

The Department of Expenditure, Ministry of Finance, distributed the fourth monthly instalment of the Post Devolution Revenue Deficit (PDRD) Grant to 14 States on Wednesday. It totaled Rs. 7,183.42 crore. According to the Fifteenth Finance Commission’s recommendations, the grant has been made available.

A total Post Devolution Revenue Deficit Grant of Rs. 86,201 crore to 14 States for the financial year 2022–23 has been recommended by the Fifteenth Finance Commission. The Department of Expenditure distributes the proposed grant to the recommended States in 12 equal monthly instalments. The total amount of Revenue Deficit Grants paid to the States in 2022–2023 has increased to Rs. 28733.67 crore with the delivery of the 4th instalment for the month of July 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.

The Fifteenth Commission determined the eligibility of States to receive this grant and the amount of grant for the period from 2020–2021 to 2025–2026 based on the difference between the State’s estimated revenue and expenditure after accounting for the estimated devolution during this time.

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.

The Post Devolution Revenue Deficit Grant suggested for 2022–2023 and the amount distributed to States as the 4th instalment are broken down each state as follows:

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