14 States Get Second Instalment Of Revenue Deficit Grant
The central government has released the second instalment of the revenue deficit grant to states.
The Department of Expenditure has released Rs 7,183.4 crore to 14 states as post devolution revenue deficit grant, according to a finance ministry statement. In all, the states are expecting a total of Rs 86,201 crore in 12 instalments for FY23.
The first instalment was released in April. So far, Rs 14,366.8-crore revenue deficit grant has been released for the ongoing fiscal.
The grant—directed by the Fifteenth Finance Commission—is allotted under Article 275 of the Constitution and is released as per the evaluation of successive finance commissions to bridge gaps in state revenue accounts after devolution.
The Fifteenth Finance Commission decides the eligibility of states to receive this grant and its quantum for 2020-21 to 2025-26.
The 14 beneficiary states for FY23 are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.