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

The Department of Expenditure, Ministry of Finance has on Tuesday released the 6th 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.

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. 43,100.50 crore with the delivery of the 6th instalment for the month of September 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 Finance 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 gap between the estimated revenue and expenditure of the State after accounting for the estimated devolution during this time.

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.

State-wise details of Post Devolution Revenue Deficit Grant recommended for 2022-23 and the amount released to States as 6th instalment are as under:

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