Centre releases Rs 7,183 cr as revenue deficit grant to 14 states

TBB BUREAU

NEW DELHI, OCT 6, 2022

The Union Finance Ministry on Thursday released the seventh 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 15th Finance Commission.

The panel had recommended a total grant of Rs 86,201 crore to 14 states for FY 2022-23.

The recommended grant is released by the Department of Expenditure to the recommended states in 12 equated monthly installments.

With the release of seventh installment for the month of October 2022, the total amount of revenue deficit grants released to the states in 2022-23 has gone up to Rs 50,282.92 crore.

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.

  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 15^th Finance Commission based on the gap between 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 15^th Finance Commission during 2022-23 are: Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.