The Centre has released the fifth monthly instalment of Post Devolution Revenue Deficit (PDRD) grant of Rs 7,183.42 crore to 14 states including Andhra Pradesh, Kerala, Rajasthan, Punjab and West Bengal, the Union Ministry of Finance said on Wednesday. The Department of Expenditure, Ministry of Finance, released the grant on Wednesday as per the recommendations of the Fifteenth Finance Commission. The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs. 86,201 crore 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 5th instalment for August, 2022, the total amount of Revenue Deficit Grants released to the States in 2022-23 has gone up to Rs. 35,917.08 crore.
The Post Devolution Revenue Deficit Grants are provided to the States under Article 275 of the Constitution. The grants are released to the States as per the recommendations of the successive Finance Commissions to meet the gap in Revenue Accounts of the States post-devolution.