Post Devolution Revenue Deficit Grant

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Context

• The Department of Expenditure, Ministry of Finance released the 6th monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of Rs. 7,183.42 crore to 14 States. The grant has been released as per the recommendations of the Fifteenth Finance Commission. 

What is PDRD?

• The Centre provides the Post Devolution Revenue Deficit Grant to the States under Article 275 of the Constitution.
• The grants are released as per the recommendations of the successive Finance Commissions in monthly instalments to meet the gap in revenue accounts of the States post-devolution. The purpose of the grant is to correct inter – state disparities and promote welfare of the state.

Grant for the period from 2020-21 to 2025-26

• The eligibility of States to receive this grant and the quantum of grant for the period from 2020-21 to 2025-26 was decided by the Fifteenth Finance Commission based on the gap between assessment of revenue and expenditure of the State after taking into account the assessed devolution during this period. 
• 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 States recommended for Post-Devolution Revenue Deficit Grant by the Fifteenth Finance Commission in 2022-2023 are: Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.
• The recommended grant is released by the Ministry of Expenditure to the recommended states in 12 equal monthly installments.

https://www.pib.gov.in/PressReleasePage.aspx?PRID=1857100#:~:text=7%2C183.42%20crore%20to%2014%20States,the%20financial%20year%202022%2D23.