14 States Receive Third Instalment Of Revenue Deficit Grant
This is the third of 12 monthly instalments out of a total corpus of Rs 86,201 crore planned for 14 states over fiscal 2023.
The central government has released the third instalment of the revenue deficit grant.
The Department of Expenditure has released Rs 7,183.4 crore to 14 states on Monday, as a post devolution revenue deficit grant, according to a finance ministry statement.
The states will receive a total of Rs 86,201 crore over the course of FY23 in 12 equal instalments, as per the directives of the Fifteenth Finance Commission.
The first instalment was released in April. So far, a revenue deficit grant of Rs 21,550.25 crore 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, after considering the expected devolution during this period.
The 14 states, who are the beneficiaries of this grant, include Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.