Context: Recently, Finance Ministry released 6th installment of revenue deficit grant of Rupees 7183 crore to 14 states.
About Post Devolution Revenue Deficit (PDRD):
Post-Devolution Revenue Deficit Grants are provided to states under Article 275 of the Constitution. They are released as per the recommendations of the Finance Commission in monthly installments to meet revenue gap accounts based on the gap between assessment of revenue and expenditure of states.
- The 15th Finance Commission has recommended a total of Post-Devolution Revenue Deficit Grant (PDRD) of 86,201 crores to 14 states for financial 2022-23 which will be released in 12 equated monthly installments.
The grants are to be nature of capital and recurring sums are paid if necessary.
The Post-Devolution Grants are paid out of the Consolidated Fund of India every year and different sums are paid to states.
Article 275 of Indian Constitution provides for payment of sums as parliament may by law provide grants-in-aid to such states as Parliament may determine to be in need of assistance.
