Fifth revenue deficit grant of Rs7,183 crore released to 14 states

4 Aug 2022 , 08:17 AM

On Wednesday, the finance ministry distributed the fifth installment of the current fiscal year’s Rs7,183 crore revenue deficit assistance to 14 states.

The 15th Finance Commission has suggested that the following states get Post Devolution Revenue Deficit Grant period 2022—2023: Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand, and West Bengal.

The Department of Expenditure released the fifth monthly installment of the Post Devolution Revenue Deficit (PDRD) Grant, totaling Rs7,183.42 crore, to 14 states on Wednesday, according to a statement from the ministry.

A total PDRD award to 14 states for the fiscal year 2022—2023 of Rs86,201 crore has been recommended by the 15th Finance Commission. The award is distributed over 12 equiv. monthly installments.

The overall amount of PDRD funds distributed to the states in 2022—2023 is Rs35,917.08 crore, according to the ministry, with the distribution of the fifth installment for the month of August 2022.

The 15th Finance Commission determined the eligibility of the states for this grant and the amount of the grant for the years 2020—21 to 2025—26 based on the disparity between the estimated revenue and expenditure of the states in question after accounting for the estimated devolution during this time.