Govt releases revenue deficit grant of Rs 7,183 crore to 14 states

The central government has released Rs 7,183.42 crore as revenue deficit grant (RDG) to 14 states, which includes Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand, and West Bengal.

The commission suggested giving the fourteen states a total PDRD grant of Rs 86,201 crore for the current fiscal year. The total amount of revenue deficit grants given to the states so far in FY23 has increased to Rs 57,467.33 crore with the release of the eighth instalment for the month of November 2022, according to a statement from the Finance Ministry.

“The Department of Expenditure released the 8th monthly instalment of the Post Devolution Revenue Deficit (PDRD) Grant of Rs 7,183.42 crore to 14 states as per the recommendations of the Fifteenth Finance Commission," the ministry said in a press note.

Under Article 275 of the Constitution, the Post Devolution Revenue Deficit Grants are made available to the States. According to the recommendations of the successive Finance Commissions, grants are given to the States in order to close the revenue account gap left by devolution.

The Fifteenth Finance Commission determined the eligibility of states to receive this grant and the amount of grant for the period from 2020–2021 to 2025–2026 based on the gap between the state's estimated revenue and expenditure after accounting for the estimated devolution during this period.