New Delhi: The Finance Ministry on Tuesday said that it has released the sixth monthly installment 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 Commission has recommended a total PDRD grant of Rs 86,201 crore to the 14 states for the financial year 2022-23.
The recommended grant will be released by the Department of Expenditure to the recommended states in 12 equated monthly installments.
The states which have been recommended are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.
“With the release of the 6th installment for the month of September, 2022, the total amount of Revenue Deficit Grants released to the States in 2022-23 has gone up to Rs. 43,100.50 crore,” said the Finance Ministry.
The PDRD 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,” said the Ministry.