Finance Ministry releases Revenue Deficit Grants to States

Finance Ministry released the sixth monthly instalment of revenue deficit grant of Rs 9871 crores to 17 states, on September 9, 2021.


  • Grants were released on the recommendations of 15th Finance Commission to 17 states for 2021-22.
  • Grants were released in accordance with the Article 275 of the Indian constitution. Under, article 275, post devolution revenue deficit grant is provided to the states.
  • Grants are released on the recommendations of the 15th Finance Commission in monthly instalments in order to meet the gap in revenue accounts of the states post-devolution.
  • This sixth monthly instalment was released by the Department of Expenditure.
  • In the current fiscal year, a total amount of Rs 59,226 crores has been released for eligible states, as of now.

Who decide the eligibility of states?

Eligibility of states for receiving this grant and quantum of the grant are decided by finance commission on the basis of gap between assessment of revenue and expenditure of the state. Commission also takes into account the assessed devolution for the respective financial year.

Which states received grants this year?

Fifteenth Finance Commission recommended names of the states to receive the Grant. They include- Assam, Andhra Pradesh, Himachal Pradesh, Haryana, Kerala, Karnataka, Meghalaya, Manipur, Mizoram, Sikkim, Nagaland, Punjab, Rajasthan, Tripura, Tamil Nadu, Uttarakhand and West Bengal.

15th finance commission recommendation

The Fifteenth Finance Commission has recommended a total revenue deficit Grant of Rs 1,18,452 crore for 17 states in 2021-22. Out of this, Rs 59,226 crore that is 50 per cent has been released so far.

Post Devolution Revenue Deficit Grant

Revenue deficit grant of Post devolution revenue deficit grant is provided to the States under Article 275 of the Constitution. Grants are released in accordance with the recommendations of the Fifteenth Finance Commission in monthly installments. It is provided to meet the gap in Revenue Accounts post devolution.


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