Question
Under which constitutional article does the Government
of India allocate the Post Devolution Revenue Deficit Grant (PDRD) to the states?Solution
The Government of India provides the Post Devolution Revenue Deficit Grant to the states under Article 275 of the Indian Constitution. This grant is issued based on the recommendations of the Finance Commission to help states bridge the gap in their Revenue Accounts after devolution. The allocation of such grants ensures fiscal uniformity and supports states in meeting specified fiscal targets.Â
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