Revenue Deficit Grant of Rs. 9,871 crore released to 17 States

The Ministry of Finance’s Department of Expenditure released the 6th monthly instalment of the Post Devolution Revenue Deficit (PDRD) Grant to the States on Thursday, totaling Rs. 9,871.00 crore. With the disbursement of this payment, the eligible States have received a total of Rs. 59,226.00 crore in Post Devolution Revenue Deficit Grant (PDRD) in the current financial year.

The total amount of Post Devolution Revenue Grant awarded to the States in 2021-22 is annexed, together with state-wise details of the grant released this month.

Article 275 of the Constitution provides the States with the Post Devolution Revenue Deficit Grant. The grants are being released in monthly instalments in accordance with the recommendations of the Fifteenth Finance Commission to close the deficit in the States’ Revenue Accounts following devolution. The Commission has recommended that 17 states get these funds between 2021 and 2022.

The Commission determined the eligibility of states for this grant and the amount of the grant based on the difference between the state’s assessed revenue and expenditure after taking into account the assessed devolution for the financial year 2021-22.

In the financial year 2021-22, the Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs. 1,18,452 crore to 17 States. So far, Rs. 59,226.00 crore (50 percent) has been released from this fund.

State-wise Post Devolution Revenue Deficit Grants Released