Finance Commission Yet to Decide on Revenue Deficit Grants for States
2025-02-25
cnbctv18
The Finance Commission chief has revealed that a decision on recommending revenue deficit grants for states is still pending. The Post Devolution Revenue Deficit (PDRD) Grants are designed to bridge the revenue gap in states following devolution, a key recommendation of past Finance Commissions. These grants play a crucial role in supporting state finances and addressing revenue shortfalls. As the commission considers its next move, states await a decision that could significantly impact their financial stability and ability to deliver public services, with revenue deficit grants potentially influencing state budgets and economic growth strategies, including fiscal federalism and public finance management.
