The Ministry of Finance today released the 7th monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant worth of Rs 1,603.41 crores to 7 northeastern states, based on recommendations of the Fifteenth Finance Commission.
According to PIB report, “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 7th 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. 50,283.92 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 release further reads.
The 7th instalment released for Assam, Manipur & Meghalaya incorporates of – Rs 407.50 Crores, 192.50 Crores, and 86.08 Crores respectively. Mizoram & Nagaland includes – Rs 134.58 Crores & 377.50 Crores respectively.
However, the Centre has released Rs 36.67 Crores & Rs 368.58 Crores for Sikkim & Tripura respectively.
Meanwhile, the states which have been recommended PDRD Grant by the 15th Finance Commission during 2022-23 are : Andhra Pradesh, Himachal Pradesh, Kerala, Punjab, Rajasthan, Uttarakhand and West Bengal.