The Ministry of Finance has delivered the third monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of Rs 9,871 crore for the year 2021-22 to 17 states. An amount of Rs 29,613 crore has been released in the initial three months of the current financial year as Post Devolution Revenue Deficit Grant to the states.
The Centre provides the Post Devolution Revenue Deficit Grant to the States under Article 275 of the Constitution. The grants are released as per the recommendations of the Finance Commission in monthly instalments to meet the gap in Revenue Accounts of the States post-devolution.
Article 275 of India’s Constitution
•It provides for the payment of such sums as Parliament may by law provide as grants-in-aid to such States as Parliament may determine to require assistance.
•The grants are paid out of the Consolidated Fund of India in each year, and different sums may be fixed for different States. These grants are to be of the nature of capital and recurring sums as may be necessary.
•These aim to enable that State to meet the costs of such schemes of development as may be undertaken by it with the approval of the Government of India to promote the welfare of the Scheduled Tribes in that State or raise the level of administration of the Scheduled
•Areas there into that of the administration of the rest of the areas of that State.
•Grants are primarily intended to correct Inter-State disparities in financial resources and to coordinate the maintenance and expansion of the welfare schemes of the State Governments on a uniform national level.
