On Monday, the Finance Ministry released the third instalment of the revenue deficit grant of Rs.7,183 crore to 14 states. The government has released this grant as per the recommendation of the 15th Finance Commission.
The 15th Finance Commission recommended a total post-devolution revenue deficit grant of Rs.86,201 crore for the financial year 2022-23 to 14 states. The department of expenditure will release the deficit grants in 12 equated monthly instalments.
The commission decided the eligibility criteria of states to receive the grant and the quantum of grant for the period 2020-21 to 2025-26. It fixed the criteria after considering the assessed devolution during the period based on the gap between the assessment of revenue and the expenditure of states.
The states eligible to receive the grant as per the recommendation of the 15th Finance Commission during 2022-23 are Assam, Andhra Pradesh, Kerala, Himachal Pradesh, Manipur, Meghalaya, Nagaland, Mizoram, Rajasthan, Punjab, Tripura, Uttarakhand, Sikkim, and West Bengal.
The total amount of deficit grants released in 2022-23 to the states stands at Rs.21,550.25 crore with the release of the third instalment for June 2022. The grants are provided to the eligible states under Article 275 of the Constitution of India.
The government releases the deficit grants to the states as per the successive Finance Commissions’ recommendations to meet the gap in the revenue accounts of the states post-devolution.
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I am an Advocate by profession. I interpret laws and put them in simple words. I love to explore and try new things in life.
