With reference to the provisions of the Indian Constitution regarding Grants-in-Aid to the States, consider the following statements: 1. Statutory grants under Article 275 are given only to those states that are in need of financial assistance and are determined based on Finance Commission recommendations. 2. Discretionary grants under Article 282 can be given by the Centre for any public purpose, even if it falls outside its legislative competence. 3. All grants-in-aid provided by the Centre to the states are obligatory under the Constitution. Which of the statements given above is/are correct? |ForumIAS

[A] 1 and 2 only

[B] 1 and 3 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: A

Notes:

Explanation:

Article 275 empowers Parliament to give statutory grants only to states in need of financial assistance, based on Finance Commission These are charged on the Consolidated Fund of India.
Article 282 allows both the Centre and states to provide discretionary grants for any public purpose, even if it falls outside their legislative competence. This is mainly used for plan-based and policy-linked assistance.
Only statutory grants are obligatory under certain conditions; discretionary grants are not obligatory—they are granted at the discretion of the Centre.

Source: Laxmikant (polity)