FinMin releases 5th revenue deficit grant of Rs 7,183 cr to 14 states

The finance ministry on Wednesday released the fifth instalment of revenue deficit grant of Rs 7,183 crore to 14 states for the current fiscal.

The states for which Post Devolution Revenue Deficit Grant has been recommended by the 15th Finance Commission during 2022-23 are -- Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.

"The Department of Expenditure has on Wednesday released the 5th monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 7,183.42 crore to 14 states," the ministry said in a statement.

The 15th Finance Commission has recommended a total PDRD grant of Rs 86,201 crore to 14 states for the financial year 2022-23. The grant is released in 12 equated monthly instalments.

The ministry said with the release of the fifth instalment for the month of August 2022, the total amount of PDRD grants released to the states in 2022-23 stands at Rs 35,917.08 crore.

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 15th Finance Commission based on the gap between assessment of revenue and expenditure of the states concerned after taking into account the assessed devolution during this period.