The Ministry of Finance on Monday said it has released the 3rd monthly instalment of revenue deficit grant of Rs.7,183.42 crore to 14 states.
The Post Devolution Revenue Deficit (PDRD) Grant, which has been released as per the recommendations of the Fifteenth Finance Commission, is being released by the Department of Expenditure to the recommended states in 12 equated monthly instalments.
The Fifteenth Finance Commission has recommended a total PDRD Grant of Rs. 86,201 crore to 14 states for the financial year 2022-23. With the release of third instalment for the month of June, 2022, the total amount of grant released to the states in 2022-23 has gone up to Rs. 21,550.25 crore, the ministry said in a release.
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 which have been recommended PDRD grant during 2022-23 are : Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.
The 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.
