Centre releases revenue deficit grant of Rs 7,183.42 cr to 14 states

The grants are released to the States as per the recommendations of the successive Finance Commissions to meet the gap in Revenue Accounts of the States post-devolution.

New Delhi:The Ministry of Finance on Wednesday announced releasing of the fourth monthly instalment of the Post Devolution Revenue Deficit (PDRD) grant of Rs 7,183.42 crore to 14 states in the country. The grant has been released as per the recommendations of the 15th Finance Commission.

"The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit grant of Rs 86,201 crore to 14 states for the financial year 2022-23. The recommended grant is released in 12 equated monthly instalments," the ministry said in a statement. The Post Devolution Revenue Deficit Grants are provided to the States under Article 275 of the Constitution.

The 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 15th Commission based on the gap between the assessment of revenue and expenditure of the State after taking into account the assessed devolution during this period. The States, which have been recommended Post Devolution Revenue Deficit grant by the 15th Finance Commission during 2022-23 include Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.