14 States Get More Than Rs 43,000 Crore As Revenue Deficit Grant So Far This Fiscal
In total, the 14 states are expecting a sum of Rs 86,201 crore in 12 equal instalments for FY23.
India has released more than Rs 43,000 crore so far this fiscal as revenue deficit grant to states.
The Department of Expenditure has released a monthly grant of Rs 7,183.4 crore to 14 states to meet the gap in their revenue accounts post devolution, according to a finance ministry statement on Tuesday. That’s the sixth instalment of such grant, taking the total amount released to the states to Rs 43,100.5 crore so far in FY23.
The beneficiary states include Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.
In total, the 14 states are expecting a sum of Rs 86,201 crore in 12 equal instalments for FY23.
“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,” the ministry said in the statement. “(It is) based on the gap between assessment of revenue and expenditure of the state after taking into account the assessed devolution during this period.”
Devolution refers to the share of central taxes that is transferred to states. The 15th Finance Commission has directed that states will receive a 41% share of the central taxes as devolution over 14 instalments throughout the year.
In August, the states also received two instalments of tax devolution to help them meet their expenses. The government released Rs 1,16,665.75 crore on Aug. 10 against the monthly devolution amount of Rs 58,332.86 crore for FY23. That’s expected to propel state-led capex.