Home  /  Daily Current Affairs  /  11-05-2021 / Post Devolution Revenue Deficit Grant

Post Devolution Revenue Deficit Grant

Posted on May 11, 2021 by admin1  65

In News 

Recently, the Department of Expenditure released the 2nd monthly instalment of Post Devolution Revenue Deficit (PDRD) Grant of ?9,871 crores for the year 2021-22.

Key Points 

  • The 15th Finance Commission has recommended Post Devolution Release Deficit grants to 17 States based on the gap between the assessment of revenue and expenditure of the State.
  • It has recommended a total Post Devolution Revenue Deficit Grant of ?1,18,452 crore to 17 States in the financial year 2021-22. The grant is released to the States in 12 monthly instalments.
  • The States recommended for Post Devolution Revenue Deficit Grant are: 
    • Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.

About Post Devolution Revenue Deficit Grant 

  • 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.
  • The eligibility of states to receive this grant and the quantum of the grant was decided by the Commission based on the gap between assessment of revenue and expenditure of the State after taking into account the assessed devolution for the financial year 2020-21.

Article 275 of the Constitution

  • Article 275 makes provisions for statutory grants to needy states.
  • It provides for the payment of such sums as Parliament may by law provide as grants-in-aid to States.
  • These are charged on Consolidated Fund of India. Such grants also include specific grants for promoting the welfare of the scheduled tribes in a state or for raising the level of administration of the scheduled areas in a state. 
  • The bases of these grants are recommendations of the finance commission
    • 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.

What is the Revenue Deficit?

  • Revenue deficit arises when the government’s revenue expenditure exceeds the total revenue receipts.
  • It includes those transactions that have a direct impact on a government’s current income and expenditure. 
  • This represents that the government’s own earnings are not sufficient to meet the day-to-day operations of its departments.
  • Revenue deficit turns into borrowings when the government spends more than what it earns and has to resort to external borrowings.

Source: TH


Other News of the Day

  Facts in News Hakki Pikki Tribal   It is a semi-nomadic tribe based largely in Karnataka and sparsely spread in other districts of Telangana and Andhra Pradesh.  It is said that in earlier times, the Hakki Pikki community migrated from Northern India to Karnataka  In the Kannada language, the word ‘Hakki’ means ‘bird’ and...
Read More

In News Recently, the Israeli police stormed the Al-Aqsa mosque compound in East Jerusalem, leaving a reported 300 people injured. About It came on a day Israel observes as Jerusalem Day, and marked the fourth day of clashes at one of the most revered and the most contested sites of the Palestinian-Israeli conflict. Al-Aqsa mosque...
Read More

In News OSIRIS-REx spacecraft starts its two-year-long journey back to Earth. About OSIRIS-REx It is the first U.S. mission to collect a sample from a near-Earth asteroid, called Bennu (formerly 1999 RQ36) and return it to Earth for study. Scientists will use the asteroid samples to study the formation of the solar system and of...
Read More

In News Debris from the last stage of China’s Long March rocket fell into the waters of the Indian Ocean west of the Maldives.  Background The Long March-5B Y2 rocket was carrying the Tianhe, or Heavenly Harmony, module, which is the first of three key components for the construction of China’s space station. China’s space...
Read More

In News  Recently, the International Union for Conservation of Nature(IUCN) released a report on endangered species threatened by conflict. Major Highlights of the Report  A report examined the close interplay between the environment and armed conflict. It found that Civil unrest and military exercises pose heightened risks to more than 200 threatened species, including elephant...
Read More

In news   Recently, the India-EU Leaders’ Meeting was held.    About   The meeting was held in a hybrid format with the participation of leaders of all the 27 EU Member States as well as the President of the European Council and the European Commission. This is the first time that the EU hosted...
Read More