RDG is not an optional support but a structural necessity for Himachal, says former HAS officer DK Manta

Shimla, Feb. 4 -- Amid the political debate over the withdrawal of the Revenue Deficit Grant (RDG) to Himachal Pradesh, former HAS officer DK Manta has underlined the constitutional importance of Article 275(1), stating that the provision forms a crucial pillar of India's fiscal federal structure and safeguards the financial autonomy of states.

Talking to UNI, Manta said Article 275(1) empowers Parliament to provide grants-in-aid from the Consolidated Fund of India to states in need of assistance, based on the recommendations of the Finance Commission.

He explained that one of the most significant components of this provision is the Post-Devolution Revenue Deficit (PDRD) grant, commonly known as the RDG, which helps states bridge the gap ...