Northeast states to get revenue deficit grant of Rs 19,241 crore

The Northeastern states in addition to Andhra Pradesh, Himachal Pradesh, Kerala, Punjab, Uttarakhand, and West Bengal will be granted a total revenue Deficit grant of Rs.86,201 crore by the Fifteenth Finance Commission in 2022-23.

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 Commission based on the gap between the assessment of revenue and expenditure of the State after taking into account the assessed devolution during this period. 

The Department of Expenditure, Ministry of Finance delivered the fourth monthly installment of the Post Devolution Revenue Deficit (PDRD) Grant to 14 States on Wednesday, totaling Rs. 7,183.42 crores. The grant was made available in accordance with the recommendations of the Fifteenth Finance Commission.

For the financial year 2022-23, the Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs. 86,201 crores to 14 States. 

The recommended grant is distributed to the recommended states in 12 equalized monthly installments by the Department of Expenditure. The total amount of Revenue Deficit Grants paid to States in 2022-23 has increased to Rs. 28733.67 crores with the delivery of the fourth installment for the month of July, 2022.

Article 275 of the Constitution provides for Post-Devolution Revenue Deficit Grants to the states. The grants are given to the states in accordance with the recommendations of successive Finance Commissions in order to cover the revenue gap left by devolution.