Finance Ministry releases deficit grant of Rs 7,183 cr to 14 states

New Delhi, June 6 (FN Agency) The Ministry of Finance on Monday said it has released the third 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 Fifteenth Finance Commission, an official statement said. The 15th 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 by the Department of Expenditure to the recommended States in 12 equated monthly installments. With the release of 3rd instalment for the month of June, 2022, the total amount of Revenue Deficit Grants released to the States in 2022-23 has gone up to Rs. 21,550.25 crore.

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