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Under Article 243H of the Constitution of India, who may provide for grants-in-aid to Panchayats from the Consolidated Fund of the State?

Question and options

Under Article 243H of the Constitution of India, who may provide for grants-in-aid to Panchayats from the Consolidated Fund of the State?

  1. The State Finance Commission, by its award

  2. The Governor, by order

  3. The State Legislature, by law

  4. Parliament, by law

Answer and explanation

Correct answer: C - The State Legislature, by law

Article 243H lets the Legislature of a State, by law, authorise Panchayats to levy and appropriate taxes, assign them State taxes and provide grants-in-aid from the Consolidated Fund of the State. The State Finance Commission under Article 243I only makes recommendations to the Governor, and at Union level it is the Finance Commission that recommends, under Article 280(3)(bb), measures to augment a State's Consolidated Fund for its Panchayats; Article 243H gives Parliament no power here.

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