14 States Receive Fifth Instalment Of Revenue Deficit Grant
A revenue deficit grant worth Rs 35,917.1 crore has been released to states so far this fiscal.
The central government has released the fifth instalment of the revenue deficit grant.
The Department of Expenditure has released Rs 7,183.4 crore to 14 states, as a post devolution revenue deficit grant, according to a finance ministry statement.
In total, the 14 states are expecting a sum of Rs 86,201 crore in 12 equal instalments for FY23.
So far, a revenue deficit grant worth Rs 35,917.1 crore has been released.
The grant—allotted to the states under Article 275 of the Constitution—is directed by the Finance Commission to meet the gap in revenue accounts of the states post devolution, according to a finance ministry document. Devolution refers to the share of central taxes that is transferred to states.
The Fifteenth Finance Commission decided the total amount to be released from 2020-21 to 2025-26 and the eligibility of states to receive this grant, after considering the expected devolution during this period. Currently, as per the recommendation of the commission, 41% of the divisible tax pool is transferred to states.
The 14 states, who are the beneficiaries of the grant, include Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.