Which of the following is the biggest item of grants-in-aid to the states assigned by the Fifteenth…
The Fifteenth Finance Commission recommended grants-in-aid of about ₹10.33 lakh crore to the states for 2021-26. The largest head was grants to local bodies, about ₹4.36…
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Which of the following is the biggest item of grants-in-aid to the states assigned by the Fifteenth Finance Commission?
Answer and explanation
Correct answer C
The Fifteenth Finance Commission recommended grants-in-aid of about ₹10.33 lakh crore to the states for 2021-26. The largest head was grants to local bodies, about ₹4.36 lakh crore, followed by revenue deficit grants of about ₹2.95 lakh crore; sector-specific grants (about ₹1.30 lakh crore) and disaster risk management grants (about ₹1.23 lakh crore) were much smaller. Revenue deficit grants are the tempting choice, but they are front-loaded and taper off over the award period.
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UGC NET Economics