Revenue Deficit Grant of Rs. 9,871 Crore Released to 17 States

Revenue Deficit Grant of Rs. 9,871 Crore Released to 17 States The Ministry of Finance's Department of Expenditure today released a Rs. 9,871 crore monthly Post Devolution Revenue Deficit (PDRD) Grant to 17 States. The PDRD award was released to the States for the 11th time. Article 275 of the Constitution provides the States with Post Devolution Revenue Deficit Grants. The grants are distributed to the states in accordance with the recommendations of the Fifteenth Finance Commission in order to close the shortfall in state revenue accounts following devolution. The Commission has proposed that 17 states get PDRD grants, which will be distributed in equal monthly payments. 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 fiscal 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. Under the current financial year, qualifying States have received a total of Rs. 1,08,581 crore (91.6%) in Post Devolution Revenue Deficit Grant.