Revenue Deficit Grant (RDG) of Rs. 7,183.42 crore released to 14 States

Total Revenue Deficit Grant released to States so far in current financial year has gone up to Rs. 50,283.92 crore

States will get a total Revenue Deficit Grant of Rs. 86,201 crore in 2022-23

The Department of Expenditure, Ministry of Finance has on Thursday released the 7^th monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of Rs.7,183.42 crore to 14 States.  The grant has been released as per the recommendations of the Fifteenth Finance Commission.   

The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs. 86,201 crore to 14 States for the financial year 2022-23. The recommended grant is released by the Department of Expenditure to the recommended States in 12 equated monthly instalments. With the release of 7^th instalment for the month of October, 2022, the total amount of Revenue Deficit Grants released to the States in 2022-23 has gone up to Rs. 50,282.92 crore.

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 successive Finance Commissions to meet the gap in Revenue Accounts of the States post devolution.

  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 Fifteenth Finance Commission based on the gap between assessment of revenue and expenditure of the State after taking into account the assessed devolution during this period. 

The States who have been recommended Post Devolution Revenue Deficit Grant by the Fifteenth Finance Commission  during 2022-23 are : Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.

State-wise details of Post Devolution Revenue Deficit Grant recommended for 2022-23 and the amount released to States as 7^th  instalment are as under:

State-wise Post Devolution Revenue Deficit Grant (PDRDG) Released 

(Rs in crore)

S. No.	Name of State	7th instalment released for the month of October, 2022.	Total PDRDG released to States during 2022-23.
1	Andhra Pradesh	879.08	6153.58
2	Assam	407.50	2852.50
3	Himachal Pradesh	781.42	5469.92
4	Kerala	1097.83	7684.83
5	Manipur	192.50	1347.50
6	Meghalaya	86.08	602.58
7	Mizoram	134.58	942.08
8	Nagaland	377.50	2642.50
9	Punjab	689.50	4826.50
10	Rajasthan	405.17	2836.17
11	Sikkim	36.67	256.67
12	Tripura	368.58	2580.08
13	Uttarakhand	594.75	4163.25
14	West Bengal	1132.25	7925.75

 

Post Devolution Revenue Deficit Grant released to recommended states under constitutional Article to address post devolution revenue gaps. The Department of Expenditure released the seventh monthly instalment of the Post Devolution Revenue Deficit Grant under Article 275, implementing the Fifteenth Finance Commission's recommendation to distribute entitlements to fourteen recommended States in twelve equated instalments. Eligibility and quantum were determined by the Commission based on assessed gaps between State revenue and expenditure after accounting for devolution; the instalment mechanism enables cumulative tracking of releases to meet post devolution revenue shortfalls.