Revenue Deficit Grant of ₹ 9,871 crore released to 17 States

Total Revenue Deficit Grant of ₹ 19,742 crore released to States in last 2 months

The Department of Expenditure, Ministry of Finance today released the 2^nd monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of ₹ 9,871 crore for the year 2021-22 to 17 States. 

With the release of 2^nd installment, a total amount of Rs. 19,742 crore has been released in the first two months of the current financial year as Post Devolution Revenue Deficit Grant to the states. State-wise details of the grant released on Thursday and total amount of Post Devolution Revenue Deficit Grant released to the States in 2021-22 is enclosed.

The Centre provides the Post Devolution Revenue Deficit Grant to the States under Article 275 of the Constitution. The grants are released as per the recommendations of the Finance Commission in monthly installments to meet the gap in Revenue Accounts of the States post devolution.  The 15^th Finance Commission has recommended Post Devolution Release Deficit grants to 17 States. 

The States recommended for Post Devolution Revenue Deficit Grant are: Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.

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. Assessed devolution for the financial year 2021-22 was also taken into account by the Commission.

The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of ₹ 1,18,452 crore to 17 States in the financial year 2021-22.  The grant is released to the States in 12 monthly installments. 

State-wise Post Devolution Revenue Deficit Grant Released

S. No.	Name of State	Amount released in May 2021 (2nd  installment) (Rs. in crore)	Total amount released in 2021-22 (April+May 2021) (Rs. in crore)
	Andhra Pradesh	1438.08	2876.16
	Assam	531.33	1062.66
	Haryana	11.00	22
	Himachal Pradesh	854.08	1708.16
	Karnataka	135.92	271.84
	Kerala	1657.58	3315.16
	Manipur	210.33	420.66
	Meghalaya	106.58	213.16
	Mizoram	149.17	298.34
	Nagaland	379.75	759.5
	Punjab	840.08	1680.16
	Rajasthan	823.17	1646.34
	Sikkim	56.50	113
	Tamil Nadu	183.67	367.34
	Tripura	378.83	757.66
	Uttarakhand	647.67	1295.34
	West Bengal	1467.25	2934.5
	Total	9,871.00	19,742.00

 

Post Devolution Revenue Deficit Grant provided to multiple States to address post devolution revenue gaps under Article 275. The Central Government released the second monthly installment of the Post Devolution Revenue Deficit Grant-9,871 crore to 17 States-pursuant to the Fifteenth Finance Commission's recommendations under Article 275. This brings the two month total to 19,742 crore of a Commission recommended 1,18,452 crore for 2021 22, to be paid in 12 monthly installments. Eligibility and quantum were determined by the Finance Commission based on assessed gaps between State revenue and expenditure and assessed devolution.