The Department of Expenditure, Ministry of Finance on Monday released the 8th monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of Rs. 7,183.42 crore to 14 States.
The grant has been released as per the recommendations of the Fifteenth Finance Commission.
The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs. 86,201 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.
With the release of 8th instalment for the month of November, 2022, the total amount of Revenue Deficit Grants released to the States in 2022-23 has gone up to Rs. 57,467.33 crore.
Article 275 and Revenue Deficit Grants
The Post Devolution Revenue Deficit Grants are provided to the States under Article 275 of the Constitution that provides for grants from the Union to certain States.
These grants are in aid of the revenues of such States and are charged on the Consolidated Fund of India.
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.
Role of 15th Finance Commission
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 Fifteenth Finance Commission based on the gap between assessment of revenue and expenditure of the State after taking into account the assessed devolution during this period.
The States that have been recommended Post Devolution Revenue Deficit Grant by the Fifteenth Finance Commission during 2022-23 are: Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand, and West Bengal.