The Department of Expenditure, Ministry of Finance has released the seventh monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs.7,183.42 crore to 14 states for the month of October.
Of this, Meghalaya received Rs 86.08 crore. The total PDRD Grant released to the State during 2022-23 is Rs 602.58 crore.
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 states that have been recommended Post Devolution Revenue Deficit Grant by the Fifteenth Finance Commission during 2022-23 are Meghalaya, Assam, Mizoram, Nagaland, Sikkim, Tripura, Andhra Pradesh, Himachal Pradesh, Kerala, Manipur, Punjab, Rajasthan, Uttarakhand and West Bengal.
The recommended grant is released by the Department of Expenditure to the recommended states in twelve equated monthly installments.
With the release of seventh installment for the month of October, 2022, the total amount of Revenue Deficit Grants released to the 14 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.