Centre releases revenue deficit grant of Rs 7,183.42 cr to 14 states

The Ministry of Finance announced releasing of the 4th monthly instalment of the Post Devolution Revenue Deficit (PDRD) grant of Rs 7,183.42 crore to 14 states in the country. The grant has been released by the central ministry as per the recommendations of the fifteenth Finance Commission. 

A total PDRD grant of Rs 86,201 crore to 14 states for the fiscal year 2022–23 has been recommended by the Fifteenth Finance Commission. The Department of Expenditure of the Finance Ministry distributed the proposed grant to the recommended states in 12 equal monthly instalments. With the payment of the current instalment, the total amount of Revenue Deficit Grants allocated to states in this fiscal year has increased to Rs 28,733.67 crore. 

The PDRD grants are made available to the states under the provisions of article 275 of the Constitution. According to the recommendations of the consecutive Finance Commissions, grants are given to the states in order to close the revenue account deficit left by devolution. The Fifteenth Commission evaluated the eligibility of states to receive this grant and the amount of grant for the period from 2020–2021 to 2025–2026 based on the difference between the state's estimated revenue and expenditure after accounting for the estimated devolution during this time.

Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand, and West Bengal are the states for which the Fifteenth Finance Commission has recommended Post Devolution Revenue Deficit Grant for the fiscal years 2022–2023.

Also read: PLI scheme could boost India's GDP by 4% annually: Emkay

Also read: RBI announces slew of measures to enhance forex inflows as rupee tumbles