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Centre releases revenue deficit grant of Rs 7,183 crore to 14 states

By Shgun S -- September 06, 2022 4:41 pm -- Updated:September 06, 2022 4:41 pm

New Delhi, September 6: The central government announced a revenue deficit grant of Rs 7,183.42 crore to 14 states on Tuesday, including Andhra Pradesh, Kerala, Assam, Rajasthan, and West Bengal.

The Department of Expenditure has released the sixth monthly instalment of the Post Devolution Revenue Deficit (PDRD) Grant to 14 States, totalling Rs 7,183.42 crore. The grant was released in accordance with the recommendations of the Fifteenth Finance Commission, according to a statement issued by the Union Ministry of Finance. For the fiscal year 2022-23, the Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs 86,201 crore to 14 states.

The recommended grant is released to the recommended states in 12 equalised monthly instalments by the Department of Expenditure. The release of the sixth instalment for the month of September 2022 brings the total amount of Revenue Deficit Grants released to the States in 2022-23 to Rs 43,100.50 crore, according to the ministry.

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Article 275 of the Constitution provides for Post-Devolution Revenue Deficit Grants to the states. The grants are released to the states in accordance with the recommendations of successive Finance Commissions in order to meet the gap in Revenue Accounts of the States post-devolution.

The Fifteenth Finance Commission assessed the eligibility of states to receive this grant and the quantum of grant for the period 2020-21 to 2025-26 based on the difference between the state's assessed revenue and expenditure after taking into account the assessed devolution during this time.

The following states have been proposed by the Fifteenth Finance Commission for Post Devolution Revenue Deficit Grant during 2022-23: Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand, and West Bengal.

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-PTC News

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