The Post Devolution Revenue Deficit Grant in the amount of 7,183.42 crores was distributed to 14 States by the Department of Expenditure in its sixth monthly installment.
Digital Desk: The central government announced a revenue deficit grant of 7,183.42 crores to 14 states on Tuesday, including Andhra Pradesh, Kerala, Assam, Rajasthan, and West Bengal.
The Department of Expenditure has released the sixth monthly installment of the Post Devolution Revenue Deficit (PDRD) Grant to 14 States in the amount of 7,183.42 crores.
The fund was made available under 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 86,201 crores to 14 states.
The Department of Expenditure distributes the proposed grant to the recommended States in 12 equal monthly installments. The overall amount of Revenue Deficit Grants issued to the States in 2022-23 has increased to 43,100.50 crores with the delivery of the 6th installment for September 2022, according to the ministry.
Under Article 275 of the Constitution, the Post Devolution Revenue Deficit Grants are made available to the States. In order to fill the gap in the States' post-devolution revenue accounts, the grants are disbursed to the States following the recommendations of the subsequent Finance Commissions.
The Fifteenth Finance Commission determined the eligibility of states for this fund and the amount of grant for the period from 2020–21 to 2025–26 based on the difference between the estimated revenue and expenditure of the State after accounting for the estimated devolution during this time.
The following states have been recommended by the Fifteenth Finance Commission for the Post Devolution Revenue Deficit Grant for the fiscal year 2022–2023: Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand, and West Bengal.
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