Centre releases revenue deficit grant of Rs 7.1k cr to 14 states | The Financial Express

Centre releases revenue deficit grant of Rs 7.1k cr to 14 states

The recommended grant is released by the Department of Expenditure to the recommended states in 12 equated monthly instalments.

Centre releases revenue deficit grant of Rs 7.1k cr to 14 states
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. (Image: IE)

The Centre on Tuesday released the sixth instalment of revenue deficit grant of 7,183 crore to 14 states for the current fiscal. The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit (PDRD) grant of86,201 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 a statement. With the release of the sixth instalment, the total amount of revenue deficit grants released to the states so far in 2022-23 has gone up to Rs 43,100.50 crore.

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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 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 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.

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The states receiving such grants are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.

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