Economy

17 States Receive the 10th Revenue Deficit Grant Instalment

The Ministry of Finance releases the 10th monthly Post Devolution Revenue Deficit (PDRD) grant worth Rs 9,871 crore to 17 states. So far, 17 states have received Rs 98,710 crore (83.33%)in PDRD in the current financial year. PDRD is rendered to the states under Article 275 of the Constitution. During 2021-22, the Commission recommended this grant to 17 states. 

Andhra Pradesh, Haryana, Assam, Karnataka, Himachal Pradesh, Manipur, Kerala, Mizoram, Meghalaya, Nagaland, Rajasthan, Punjab, Sikkim, Tripura, Tamil Nadu, West Bengal and Uttarakhand have received the grant. As per the 15th Finance Commission’s recommendations, the grants were released via monthly instalments to suffice the gap in revenue accounts concerning states post-devolution.

The Commission decided the quantum of grant the qualifying states should receive. The decision was made based on the gap between the revenue assessment and the state’s expenditure after considering the assessed devolution for 2021-22.

For any clarifications/feedback on the topic, don’t hesitate to get in touch with the writer at bhavana.pn@cleartax.in

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