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The Finance Ministry on Tuesday released the sixth instalment of revenue deficit grant of ₹7,183 crore to 14 states for the current fiscal. The grant has been released as per the recommendations of the 15th Finance Commission.
The states for which Post Devolution Revenue Deficit Grant has been recommended during 2022-23 are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.
“The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of ₹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 instalments," the finance ministry said in an official release.
With the release of the sixth instalment for the month of September 2022, the total amount of revenue deficit grant released to the states in 2022-23 has gone up to ₹43,100.50 crore.
“The Post Devolution Revenue Deficit Grants are provided to the States under Article 275 of the Constitution. 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 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 assessment of revenue and expenditure of the State after taking into account the assessed devolution during this period," it added.