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Grants-in-aid given to States are meant
  • a)
    to show favour to backward States
  • b)
    for use in centrally sponsored schemes
  • c)
    to cover gaps on revenue account so that States can undertake beneficial activities
  • d)
    for funding the State plan
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Grants-in-aid given to States are meanta)to show favour to backward St...
  • A grant-in-aid is money coming from the central government for a specific project. This kind of funding is usually used when the government and parliament have decided that the recipient should be publicly funded but operated with reasonable independence from the state.
  • A grant-in-aid is funds allocated by one government level to another level of government to be used for specific purposes.
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Grants-in-aid given to States are meanta)to show favour to backward St...
Explanation:

Purpose of Grants-in-aid to States:
Grants-in-aid given to States are meant to cover gaps on the revenue account so that States can undertake beneficial activities. This means that these grants are provided to assist States in financing activities that they may not have enough revenue to fund on their own.

Key Points:
- Grants-in-aid are not given to show favoritism to backward States or for funding the State plan.
- These grants are also not solely for use in centrally sponsored schemes, although they can be utilized for such purposes.
- The main purpose of providing grants-in-aid to States is to fill revenue gaps so that States can carry out activities that are beneficial for their development.
- By receiving grants-in-aid, States are better able to provide essential services and infrastructure to their citizens, leading to overall progress and growth.
In conclusion, grants-in-aid play a crucial role in supporting States in their development efforts by filling revenue gaps and enabling them to undertake beneficial activities for the welfare of their residents.
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Grants-in-aid given to States are meanta)to show favour to backward Statesb)for use in centrally sponsored schemesc)to cover gaps on revenue account so that States can undertake beneficial activitiesd)for funding the State planCorrect answer is option 'C'. Can you explain this answer?
Question Description
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