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Grants from the Centre to the States under the recommendations of Finance Commission are known as
- a)Development assistance
- b)Discretionary grants
- c)Statutory grants
- d)Plan grants
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Grants from the Centre to the States under the recommendations of Fina...
Statutory grants refer to the grants that are mandated by law and are given to the states by the central government under the recommendations of the Finance Commission. These grants are given to the states to ensure that they have adequate funds to carry out their functions and responsibilities.
The Finance Commission is a constitutional body that is appointed every five years to recommend the distribution of taxes between the central and state governments. The grants that are given to the states by the central government under the recommendations of the Finance Commission are known as statutory grants.
Features of Statutory Grants:
1. Mandated by Law: Statutory grants are mandated by law and are given to the states under the recommendations of the Finance Commission.
2. Fixed Formula: The amount of statutory grants is determined by a fixed formula that is based on the recommendations of the Finance Commission.
3. Non-Discretionary: The central government has no discretion in deciding the amount of statutory grants that are given to the states. The amount is determined by the recommendations of the Finance Commission.
4. Purpose-Specific: Statutory grants are given to the states for specific purposes such as education, health, and infrastructure development.
Types of Statutory Grants:
1. Share in Central Taxes: This grant is given to the states as a share of the taxes collected by the central government. The Finance Commission recommends the percentage of taxes that should be given to the states.
2. Grants for State Plan Schemes: These grants are given to the states for implementing their plan schemes. The Finance Commission recommends the amount that should be given to the states for this purpose.
3. Grants for Local Bodies: These grants are given to the local bodies in the states to carry out their functions. The Finance Commission recommends the amount that should be given to the local bodies.
Conclusion:
Statutory grants are an important source of funds for the states. They are given to the states under the recommendations of the Finance Commission and are mandated by law. These grants ensure that the states have adequate funds to carry out their functions and responsibilities.
The Finance Commission is a constitutional body that is appointed every five years to recommend the distribution of taxes between the central and state governments. The grants that are given to the states by the central government under the recommendations of the Finance Commission are known as statutory grants.
Features of Statutory Grants:
1. Mandated by Law: Statutory grants are mandated by law and are given to the states under the recommendations of the Finance Commission.
2. Fixed Formula: The amount of statutory grants is determined by a fixed formula that is based on the recommendations of the Finance Commission.
3. Non-Discretionary: The central government has no discretion in deciding the amount of statutory grants that are given to the states. The amount is determined by the recommendations of the Finance Commission.
4. Purpose-Specific: Statutory grants are given to the states for specific purposes such as education, health, and infrastructure development.
Types of Statutory Grants:
1. Share in Central Taxes: This grant is given to the states as a share of the taxes collected by the central government. The Finance Commission recommends the percentage of taxes that should be given to the states.
2. Grants for State Plan Schemes: These grants are given to the states for implementing their plan schemes. The Finance Commission recommends the amount that should be given to the states for this purpose.
3. Grants for Local Bodies: These grants are given to the local bodies in the states to carry out their functions. The Finance Commission recommends the amount that should be given to the local bodies.
Conclusion:
Statutory grants are an important source of funds for the states. They are given to the states under the recommendations of the Finance Commission and are mandated by law. These grants ensure that the states have adequate funds to carry out their functions and responsibilities.
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Grants from the Centre to the States under the recommendations of Finance Commission are known asa)Development assistanceb)Discretionary grantsc)Statutory grantsd)Plan grantsCorrect answer is option 'C'. Can you explain this answer?
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Grants from the Centre to the States under the recommendations of Finance Commission are known asa)Development assistanceb)Discretionary grantsc)Statutory grantsd)Plan grantsCorrect answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Grants from the Centre to the States under the recommendations of Finance Commission are known asa)Development assistanceb)Discretionary grantsc)Statutory grantsd)Plan grantsCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Grants from the Centre to the States under the recommendations of Finance Commission are known asa)Development assistanceb)Discretionary grantsc)Statutory grantsd)Plan grantsCorrect answer is option 'C'. Can you explain this answer?.
Grants from the Centre to the States under the recommendations of Finance Commission are known asa)Development assistanceb)Discretionary grantsc)Statutory grantsd)Plan grantsCorrect answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Grants from the Centre to the States under the recommendations of Finance Commission are known asa)Development assistanceb)Discretionary grantsc)Statutory grantsd)Plan grantsCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Grants from the Centre to the States under the recommendations of Finance Commission are known asa)Development assistanceb)Discretionary grantsc)Statutory grantsd)Plan grantsCorrect answer is option 'C'. Can you explain this answer?.
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