Revenue Deficit Grant of ₹ 6,194.09 crore released to 14 States

Total Revenue Deficit Grant of ₹ 74,340 crore released to States in the current financial year

The Department of Expenditure, Ministry of Finance released today the 12th and final monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of ₹ 6,194.09 crore to the States.  With the release of this installment, a total amount of ₹ 74,340 crore has been released to eligible States as Post Devolution Revenue Deficit Grant in the current financial year.

State-wise details of the grant released this month and total amount of Post Devolution Revenue Deficit Grant released to the States in 2020-21 is annexed.

The Post Devolution Revenue Deficit Grants are provided to the States under Article 275 of the Constitution.  The grants are released in monthly instalments as per the recommendations of the Fifteenth Finance Commission to meet the gap in Revenue Accounts of the States post devolution. The Commission has recommended PDRD grants to 14 States.

The eligibility of States to receive this grant and the quantum of grant was decided by the 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 2020-21.

The Fifteenth Finance Commission had recommended a total Post Devolution Revenue Deficit Grant of ₹ 74,340 crore to 14 States in the financial year 2020-21.  100% of the amount recommended by the Commission to these 14 States has been released by the central government.

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

State-wise Post Devolution Revenue Deficit Grants Released

(Rs. In crore)

S. No.	Name of State	Amount released on 10th  March 2021 (12th instalment)	Total amount released in 2020-21
1.	Andhra Pradesh	491.34	5896.92
2.	Assam	631.48	7578.90
3.	Himachal Pradesh	952.43	11430.85
4.	Kerala	1276.72	15322.80
5.	Manipur	235.30	2823.97
6.	Meghalaya	40.91	490.99
7.	Mizoram	118.48	1421.98
8.	Nagaland	326.36	3916.94
9.	Punjab	638.15	7658.90
10	Sikkim	37.33	448.00
11	Tamil Nadu	335.36	4024.94
12	Tripura	269.62	3235.95
13	Uttarakhand	422.93	5075.93
14	West Bengal	417.68	5012.93
	Total	6194.09	74340.00

 

Post Devolution Revenue Deficit Grant distributed to eligible States under Article 275 to cover post-devolution revenue gaps. Release of Post Devolution Revenue Deficit Grants totaling Rs. 74,340 crore to 14 States under Article 275, with the Department of Expenditure releasing the 12th and final monthly instalment of Rs. 6,194.09 crore. Grants are disbursed in monthly instalments per the finance commission's recommendations to meet assessed gaps in States' revenue accounts after accounting for devolution; eligibility and quantum were determined by the commission's assessment and 100% of the recommended amount for 2020-21 has been released.