Receives Rs1098 cr as Oct revenue deficit grant from Centre
By CL Jose
THIRUVANANTHAPURAM/October 06-2022: Kerala gets another Rs1097.83 crore as October release of the post-devolution revenue deficit (PDRD) grant, as part of the Grant-in-Aid from the Centre.
Statistics from the Comptroller & Auditor General of India (C&AG) shows that Kerala has received Rs13,399 crore as Grant-in-Aid and contributions from the Centre until the month of August.
An interesting inference one can draw from a close look at the Government of Kerala (GoK) accounts is that the total tax and non-tax revenue earned by the state until August, 2022 (excluding Grants-in-Aid), is just sufficient to cover the state’s Committed Expenses for that period.
The expenses incurred on interest, salary and pension is termed as the Committed Expenses of a state.
While the total revenue receipts of the state until August 2022, including tax and non-tax revenue, add up to Rs38,251.82 crore (excluding Grant-in-Aid from Centre), the committed expenses of the state during this period is almost the same at Rs37,272.58 crore.
Grant-in Aid
Grant-in-Aid from the Centre during this period amounts to Rs13,399.09 crore. State’s monthly receipt of revenue deficit grant, at Rs1097.83, is porbably the largest component of the Grant-in-Aid.
While the revenue deficit grant is part of the Statutory Grants from the Centre, mandated by Article 275, there are other grants called Discretionary Grants, which the Centre is empowered to distribute to the states under Article 282.
Post-devolution revenue deficit (PDRD) grant
The Department of Expenditure, Ministry of Finance, has on Thursday released Rs1097.83 crore to Kerala as the seventh monthly instalment of the post devolution revenue deficit (PDRD) grant, thus totalling an amount of Rs7,684.81 crore so far in the current financial year on that count.
In all, 14 states are eligible for PDRD grant with West Bengal being the largest recipient of this grant at Rs1,132.25 crore monthly, followed by Kerala.
The aggregate release for 14 states on Thursday was to the tune of Rs7,183.42 crore. The grant has been released as per the recommendations of the Fifteenth Finance Commission.
The 15th Finance Commission has recommended a total PDRD grant of Rs86,201 crore to 14 states for the financial year 2022-23.
The recommended grant is released by the Department of Expenditure to the enlisted states in 12 equated monthly instalments.
With the release of the seventh instalment for the month of October, 2022, the total amount of revenue deficit grants released to the states in 2022-23 has gone up to Rs50,283.92 crore.
