Q. With respect to the Grants to Local Governments, consider the recommendations made by the Fifteenth Finance Commission:
1. The commission earmarked whole grants to Panchayati Raj Institutions for national priorities.
2. Basic grants are proposed for municipal areas with a population of less than one million.
3. ‘Million-Plus’ cities would receive performance-linked grants only.
How many statements given above are correct?
Answer: B
Notes:
Exp) Option b is the correct answer.
Statement 1 is incorrect. With respect to the Grants to Local Governments, the Fifteenth Finance Commission earmarked 60 per cent of funds for national priorities.
Statement 2 is correct. Urban local bodies have been categorised into two groups, based on population, and different norms have been used for flow of grants to each, based on their specific needs and aspirations. Basic grants are proposed only for cities/towns having a population of less than a million.
Statement 3 is correct. For Million-Plus cities, 100 per cent of the grants are performance-linked through the MillionPlus Cities Challenge Fund (MCF).
