New Delhi, March 25 -- The Centre's revenue deficit grants to states have sharply declined in recent years, reducing the funds states receive under the 15th Finance Commission's recommendations.

The grants, meant to cover post-devolution revenue shortfalls, fell from Rs.1,18,452 crore in 2021-22 to Rs.24,483 crore in 2024-25, with a further drop to Rs.13,705 crore expected in 2025-26, budget documents show.

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The steady decline reflects a broader fiscal strategy aimed at reducing states' reliance on central transfers and promoting financial self-sufficiency. The post-devolution revenue deficit grant, provided under A...