Govt releases revenue deficit grant to 14 states

The Centre has released the sixth installment of revenue deficit grant of Rs 7,183 crore to 14 states for the current fiscal. With this, the total amount of revenue deficit grants released to the states so far in 2022-23 has gone up to Rs 43,100.50 crore.

The recommended grant is released by the Department of Expenditure to the recommended states in 12 equated monthly installments. The grants are released as per the recommendations of the successive Finance Commissions to meet the gap in revenue accounts of the states post-devolution.

The Union Finance Ministry released the sixth monthly instalment of Post Devolution Revenue Deficit (PDRD) grant of Rs 7,183.42 crore to 14 states. 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 Commission based on the gap between the assessment of revenue and expenditure of the state after taking into account the assessed devolution during this period.

The states which have been recommended for the current fiscal are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.