Sir this is a news article that talks about “post devolution” and “revenue deficit grant”. Can you please shed some light on these 2 terms?
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Post Devolution Revenue Deficit Grants are provided to the States under Article 275 of the Constitution. Near about a third of the total revenue collected by the Centre is directly transferred to states as their share in the divisible pool.
However, the Finance Commission also provides a mechanism for compensation of any loss incurred by states, which is called Post Devolution Revenue Deficit Grants The grants are released to the States in 12 monthly instalments as per the recommendations of the Fifteenth Finance Commission to meet the gap in Revenue Accounts of the States post devolution