The Ministry of Finance on Thursday released Rs 7,183.42 crore as revenue deficit grant to 14 states, including West Bengal, Punjab, Andhra Pradesh, Kerala, and Nagaland. This is the seventh instalment, out of the total 12 equated instalments, of the post-devolution revenue deficit grant for the financial year 2022-23. After the release of the latest instalment, the total grant released in the current fiscal so far has gone up to Rs 50,283.92 crores, the Ministry of Finance said in a statement. These grants are being given on the recommendation of the 15th finance commission.
The 15th finance commission, chaired by former IAS officer Nand Kishore Singh, submitted a report in November 2020 and recommended the post devolution revenue deficit grant to various states over a period of five years, FY22-FY26. The commission allocated a total sum of nearly Rs 3 trillion. A total of 17 states – Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal – were recommended by the commission. The central government provides the post devolution revenue deficit grant to states under Article 275 of the constitution, out of the Consolidated Fund of India.
For this fiscal, 14 states have been recommended, excluding Haryana, Karnataka, and Tamil Nadu. The eligibility of the states has been decided based on the gap between assessment of revenue and the expenditure of the states, after taking into account the assessed devolution during this period. In the seventh instalment granted to the states in October, West Bengal and Kerala receive the maximum chunk of Rs 1132.25 crore and Rs 1097.83 crore respectively. Sikkim received the lowest amount – Rs 36.67 crore – in the grant, followed by Meghalaya, which got Rs 86.08 crore in the grant. Other major beneficiaries in the list are Andhra Pradesh (Rs 879.08 crore), Himachal Pradesh (Rs 781.42 crore), and Punjab (Rs 689.5 crore). The total amount allocated for the revenue deficit grant to be received by the states in the current fiscal is Rs 86,201 crore.