Statutory grants to states by the Union government, under Article 275 of the Constitution, are primarily recommended by which body?
Show answer & explanation
Correct answer: B
Explanation
Answer: Finance Commission
Explanation: Under Article 275 of the Constitution, statutory grants-in-aid to states are recommended by the Finance Commission of India. This body assesses the financial requirements of states and recommends how funds should be distributed from the Union government to ensure balanced development.
Additional Key Points:
Article 275 provides grants for states in need of assistance, especially tribal welfare and special purposes.
The Finance Commission is constituted every 5 years under Article 280.
It promotes fiscal federalism by balancing Centre–State financial relations.
It recommends tax sharing and grants-in-aid.
Potential Exam-Oriented Questions & Answers:
Question: What is the main function of the Finance Commission?
Answer: Distribution of financial resources between Centre and States
Question: What type of grants are given under Article 275?
Answer: Statutory grants-in-aid to states in need of assistance