The Ministry of Expenditure, Ministry of Finance, on Thursday released the 7th monthly installment of Post Devolution Revenue Deficit (PDRD) grant of Rs 7,183.42 crore for 14 states. The grant was released as per the recommendations of the 15th Finance Commission.
The Fifteenth Finance Commission recommended a total revenue deficit grant after devolution of Rs. 86,201 crore by 14 states for the financial year 2022-23. The recommended grant is released by the Ministry of Expenditure to the recommended states in 12 equal monthly installments. With the release of the 7th installment for the month of October 2022, the total amount of revenue deficit grants released to the states in 2022-23 has increased to Rs. 50,283.92 million crowns.
Deficit grants after revenue transfers are provided to states under Article 275 of the Constitution. Grants are released to the states as per the recommendations of successive finance commissions to cover the gap in the revenue accounts of the states after devolution. The eligibility of the states to receive this grant and the amount of the grant for the period from 2020-21 to 2025-26 was decided by the Fifteenth Finance Commission based on the difference between the assessed revenue and expenditure of the state after taking into account the assessed devolution during this period.
The States recommended for Post-Devolution Revenue Deficit Grant by the Fifteenth Finance Commission in 2022-2023 are: Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal .
