Other than authorising a panchayat to levy a tax the state legislature may 1 Provide for making gran...........

Indian Political System(BPSC) Panchayati Raj Instiutions

Other than authorising a panchayat to levy a tax, the state legislature may

1) Provide for making grants-in-aid to the panchayats from the consolidated fund of the state

2) Provide for the constitution of funds for crediting all moneys of the panchayats

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

As per Part IX of the constitution, following can be provided by the state legislature-
Authorise a panchayat to levy, collect and appropriate taxes, duties, tolls and fees;
Assign to a panchayat taxes, duties, tolls and fees levied and collected by the state government;
Provide for making grants-in-aid to the panchayats from the consolidated fund of the state; and
Provide for constitution of funds for crediting all moneys of the panchayats