Northeastern states received Revenue Deficit Grant of over Rs. 7000 crores along with seven other states.

As per the recommendations of the Fifteenth Finance Commission, on September 6, the Department of Expenditure, Ministry of Finance released the sixth monthly instalment of the Post Devolution Revenue Deficit (PDRD) Grant of Rs. 7,183.42 crores to seven Northeastern states, except Arunachal Pradesh, along with 7 others.

The states who are to receive the Post Devolution Revenue Deficit Grant by the Fifteenth Finance Commission during 2022-23 are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.

The Fifteenth Finance Commission has endorsed a total Post Devolution Revenue Deficit Grant of Rs. 86,201 crores to 14 States for the financial year 2022-23. The recommended grant is released by the Department of Expenditure to the recommended States in 12 equated monthly instalments. With the release of the sixth instalment for the month of September 2022. The total amount of Revenue Deficit Grants released to the States in 2022-23 has gone up to Rs. 43,100.50 crores.

The Post Devolution Revenue Deficit Grants are provided to the states under Article 275 of the Constitution.  The grants are released as per the recommendations of the successive Finance Commissions to meet the gap in Revenue Accounts of the States post-devolution.

The Fifteenth Finance Commission decided the eligibility of States to receive this grant and the quantum of grant for the period from 2020-21 to 2025-26. This was based on the gap between the assessment of revenue and expenditure of the State after taking into account the estimated distribution during this period.

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