The government announced on Friday that the first monthly tranche of the Post Devolution Revenue Deficit (PDRD) Grant had been distributed to 14 states. On Thursday, the Ministry of Finance's Department of Expenditure announced that Rs 7,183.42 crore had been released.
The grant was given out in accordance with the Fifteenth Finance Commission's recommendations. The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs 86,201 crore for the financial year 2022-23. The grant will be paid out in 12 equal monthly instalments by the Department of Expenditure.
The Post Devolution Financial Deficit Grant is paid to states under Article 275 of the Constitution to help them bridge the revenue gap that has arisen since devolution.
The Fifteenth Commission determined the states' eligibility for this award from 2020-21 to 2025-26 based on the gap between the revenue assessment and the state's expenditure after accounting for assessed devolution.
The Post Devolution Revenue Deficit Grant for 2022-23 has been recommended for Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand, and West Bengal
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