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How are the grants provided by the Fifteenth Finance Commission categorized?
  • a)
    Temporary and Permanent Grants
  • b)
    Government and Private Grants
  • c)
    Untied Grants and Tied Grants
  • d)
    National and State Grants
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
How are the grants provided by the Fifteenth Finance Commission catego...
The grants are classified into Untied and Tied Grants. Untied Grants can be utilized for specific local needs across various subjects without restrictions on how the funds are spent, while Tied Grants are earmarked for specific services, such as sanitation and water supply. This classification allows local bodies flexibility in addressing their unique challenges while ensuring funds are used for essential services.
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