The PDRD is provided to the States under Article 275 of the Constitution. The grants are released as per the recommendations of the Fifteenth Finance Commission in monthly instalments to meet the gap in Revenue Accounts of the States post-devolution. The Commission has recommended PDRD grants to 17 States during 2021-22.
The eligibility of States to receive this grant and the quantum of the grant was decided by the Commission based on the gap between assessment of revenue and expenditure of the State after taking into account the assessed devolution for the financial year 2021-22.
The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs1,18,452cr to 17 States in the financial year 2021-22. Out of this, an amount of Rs69,097cr (58.33%) has been released so far.
The States recommended for PDRD Grant by the Fifteenth Finance Commission are - Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.