The central government has released Rs 7,183.4 crore to 14 states in April as the first instalment of the annual grant to meet budget deficit.
In all, the states are expecting Rs 86,201 crore in 12 instalments across 2022-23 from the Department of Expenditure as post-devolution revenue deficit grant, according to a Finance Ministry statement issued on Friday.
The 14 states include Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.
The revenue deficit grant is in line with the recommendations of the 15th Finance Commission and is provided to states under Article 275 of the Constitution.
The commission assessed the gap between the revenue and expenditure of the 14 states, after taking into account the devolution or their share in central revenue, to decide the quantum of grant to be paid from 2020-21 to 2025-26. It's provided in 12 instalment every fiscal.
This is over and above their share in central tax collections. According to the 15th Finance Commission, 41% of the central tax revenue will be devolved to all states in 14 installments through the year.
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