Question
Consider the following statements about the Post
Devolution Revenue Deficit? I. It is related to Article 275 of the Constitution.. II. The grants are released as per the recommendations of the Finance Commission. III. The grants are released in monthly installments to meet the gap in Revenue Accounts of the States post-devolution. Which of the following statements is/are incorrect?Solution
The central government has released Rs 7,183.42 crore as a revenue deficit grant to 14 states including Andhra Pradesh, West Bengal, Rajasthan, Punjab, Assam and Kerala. The Department of Expenditure, Ministry of Finance released the money. Fifteenth Finance Commission recommended Post Devolution Revenue Deficit (PDRD) grant to states. Post Devolution Revenue Deficit (PDRD) grant is provided under Article 275 of the Indian Constitution.
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