Centre releases revenue deficit grant of ₹7,183.42 crore to 14 states

NEW DELHI: The Union finance ministry on Tuesday released the sixth revenue deficit grant of ₹7,183.42 crore to 14 states taking the total amount to ₹43,100.5 crore in the current financial year, an official statement said. The sixth, monthly instalment of post-devolution revenue deficit (PDRD) grant of ₹7,183.42 crore to 14 states has been released by the department of expenditure, an arm of the finance ministry, as per the recommendations of the Fifteenth Finance Commission. The commission recommended a total PDRD grant of ₹86,201 crore to 14 states for the financial year 2022-23. The recommended grant is being released by the department in 12 equated monthly instalments. As per Article 275 of the Constitution, revenue deficit grants are provided to states to meet the gap in their revenue accounts post-devolution. The states who have been recommended to get this grant by the Fifteenth Finance Commission during 2022-23 are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal. “With the release of 6th instalment for the month of September 2022, the total amount of revenue deficit grants released to the States in 2022-23 has gone up to Rs. 43,100.50 crore,” the statement said.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 Fifteenth Finance 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, it said.