Centre releases revenue deficit grant of over Rs 7000 crores to 14 states

Representational Image: iStock


The centre today released the eighth monthly instalment of the Post Devolution Revenue Deficit (PDRD) grant of Rs. 7,183.42 crores to 14 states.

The grant has been released as per the recommendations of the 15th Finance Commission.

The Finance Commission has recommended a total PDRD grant of Rs. 86,201 crores to 14 States for the financial year 2022-23. The recommended grant is released by the Department of Expenditure to the recommended states in twelve equated monthly instalments.

With the release of the eighth instalment for the month of November 2022, the total amount of Revenue Deficit Grants released to the states in 2022-23 has gone up to Rs. 57,467.33 crores.

The PDRD 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 the Revenue Accounts of the States post-devolution.

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 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.

The states that have been recommended PDRD g Grant by the Finance Commission during 2022-23 are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand, and West Bengal.