New Delhi [India]: The central government on Thursday released Rs 7,183.42 crore as post-devolution revenue deficit grant to 14 states including Kerala, Punjab, Rajasthan, Himachal Pradesh and West Bengal.
The Department of Expenditure, Ministry of Finance has released the 7th monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 7,183.42 crore to 14 states.
The money has been released as per the recommendations of the Fifteenth Finance Commission, Union Finance Ministry said in a statement.
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 7th instalment for the month of October 2022, the total amount of Revenue Deficit Grants released to the States in 2022-23 has gone up to Rs 50,282.92 crore.
The Post Devolution Revenue Deficit Grants are provided to the States under Article 275 of the Constitution.
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.
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 who 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.
West Bengal has received the highest amount. As the 7th instalment for the financial year 2022-23, West Bengal has received Rs 1,132.25 crore. The cumulative amount stands at Rs 7,925.75 crore. Kerala, Andhra Pradesh, Himachal Pradesh and Punjab are the major beneficiaries of the Post Devolution Revenue Deficit (PDRD) Grant.