NEW DELHI: The government gave 14 states a revenue deficit grant (RDG) worth Rs 7,183.42 crore on Monday. This brings the total RDG distributed to states during the current fiscal year to Rs. 57,467.33 crore. This was the seventh grant payment made to states during the current fiscal year.
The states would receive a total RDG of Rs 86,201 crore in 2022–2023.
For the fiscal year 2022–2023, the 15th Finance Commission has recommended giving 14 states a total post-devolution RDG of Rs 86,201 crore.
The department of spending disburses the proposed amount to the approved states in 12 equal monthly instalments. Under Article 275 of the Constitution, the states are given access to the post-devolution RDG. After devolution, the grants are given to the states to fill the hole in their revenue accounts.
The overall amount of revenue deficit grants given to the states in 2022–23 has increased to Rs. 57,467.33 crore with the delivery of the eighth installment for the month of November in 2022, it stated.
Under Article 275 of the Constitution, the states get subsidies to help with their post-devolution revenue deficits. According to the recommendations of the consecutive Finance Commissions, grants are given to the states in order to cover the revenue gap left by devolution.
The Fifteenth Finance Commission determined the eligibility of states to receive this grant and the amount of grant for the period from 2020–2021 to 2025–2026 based on the difference between the state's estimated revenue and expenditure after accounting for the estimated devolution during this time.
Currency with public rises to new high at Rs.30.88 lakh cr
Commerce ministry to release export-import data once a month
PPP project Funding: Centre provides Rs 5 cr for project development