Q. Consider the following statements regarding the Panchayat Advancement Index (PAI) 2.0:
1.It is developed by the Niti Aayog.
2.It focuses only on financial performance of Panchayats and excludes social and environmental indicators.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: D
Notes:

Explanation: Neither 1 nor 2

Statement 1 is incorrect: PAI 2.0 is an improved framework by the Ministry of Panchayati Raj to measure Panchayat performance aligned with Localisation of SDGs (LSDGs).

Statement 2 is incorrect: It uses a multidimensional approach, covering economic, social, environmental, and governance indicators, not just financial aspects.

Source: PIB

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