Revenue Deficit Grant of Rs 9,871 cr released to 17 states: Finance Ministry

The Department of Expenditure, Ministry of Finance on Thursday released the second monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore for the year 2021-22 to 17 States.

"With the release of second installment, a total amount of Rs 19,742 crore has been released in the first two months of the current financial year as Post Devolution Revenue Deficit Grant to the states", read the release by the Union Ministry.

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 Finance Commission in monthly installments to meet the gap in Revenue Accounts of the States post-devolution.


The 15th Finance Commission has recommended Post Devolution Release Deficit grants to 17 States.

The States recommended for Post Devolution Revenue Deficit Grant are Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.

The eligibility of States to receive this grant and the quantum of grant was decided by the Commission based on the gap between assessment of revenue and expenditure of the State. Assessed devolution for the financial year 2021-22 was also taken into account by the Commission.

The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs 1,18,452 crore to 17 States in the financial year 2021-22. The grant is released to the States in 12 monthly installments.