The central government has released the fourth instalment of the revenue deficit grant to states.
The Department of Expenditure has released Rs 7,183.4 crore to 14 states as a post devolution revenue deficit grant, according to a finance ministry statement. In all, states are expecting a total of Rs 86,201 crore in 12 instalments for FY23.
So far, revenue deficit grant worth Rs 28,733.67 crore has been released.
The grant—allotted to the states under Article 275 of the Constitution—is directed by the Finance Commission to meet the gap in revenue accounts of the states post devolution, according a finance ministry document.
The Fifteenth Finance Commission decided the total amount to be released from 2020-21 to 2025-26 and the eligibility of states to receive this grant after considering the expected devolution during this period.
The 14 beneficiary states are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.
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