FinMin releases Revenue Deficit Grant of Rs9,871cr to 17 States

6 Jan 2022 , 03:51 PM

The Department of Expenditure, Ministry of Finance, on Thursday released a monthly Post Devolution Revenue Deficit (PDRD) Grant of Rs. 9,871 crore to 17 States.  This was the 10th instalment of the PDRD grant released to the States.

So far, an amount of Rs. 98,710 crore has been released to eligible States as Post Devolution Revenue Deficit Grant in the current financial year.  State-wise details of the grant released this month and the total amount of Post Devolution Revenue Deficit Grant released to the States in 2021-22 is annexed. 

The grants are released to the States as per the recommendations of the Fifteenth Finance Commission to meet the gap in Revenue Accounts of the States post-devolution.  The Commission has recommended PDRD grants to 17 States and the same is being released in monthly instalments.

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 Rs. 1,18,452  crore to 17 States in the financial year 2021-22.  Out of this, an amount of Rs. 98,710 crore (83.33%) has been released so far.

The States who have been recommended Post Devolution Revenue Deficit 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.