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.