Revenue deficit grant of Rs 9,871 cr released to 17 states

The Department of Expenditure under the Ministry of Finance on Thursday released the monthly Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore to 17 states. This was the 10th instalment of the PDRD grant released to the 17 states.

So far, an amount of Rs 98,710 crore has been released to eligible states as Post Devolution Revenue Deficit Grant in the current financial year.

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 Fifteenth Finance Commission to meet the gap in Revenue Accounts of the States post-devolution.  The Commission had recommended PDRD grants to 17 States/ The grants are being in the form on monthly instalments.

The eligibility of states and the quantum of the grant 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 for the financial year 2021-22.  

The Fifteenth Finance Commission had recommended a total Post Devolution Revenue Deficit Grant of Rs. 1,18,452 crore to 17 states in the financial year 2021-22.  Out of this, an amount of Rs 98,710 crore (83.33 per cent) has been released so far.

The states who have been recommended Post Devolution Revenue Deficit Grant by the Fifteenth Finance Commission are: Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.

Here’s the breakup of the grants received by each of the 17 states in the tenth instalment:

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