Consider the following observations about the provisions of Grant in aid in India 1 T...........

Indian Polity Centre - State Relations

Consider the following observations about the provisions of Grant-in-aid in India:

1. The Article 275 of the Constitution of India provides that every state of India shall be allocated grants-in-aid

2. The allocation of grants-in-aid has to be uniformly distributed as per a ratio of the population / Income of the concerned state

3. The role of Finance Commission is to ensure that the grants-in-aid reaches every state as per the provisions of the Constitution of India

Which among the above statements is/ are correct?

Only 1

Only 1 & 2

Only 2 & 3

None of them

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Explanation:

Grants under Article 275 (1) of the Constitution of India.There shall be paid out of the consolidated fund of India a grants-in-aid of the revenues of the autonomous state sums, capital and recurring equivalent to the costs of such schemes of development as may be undertaken by the autonomous state with the approval of the Government of India for the purpose of raising the level of administration.No grant aided on the basis of population.Provided that there shall be paid out of the consolidated fund of India as grants-in-aid of the revenues of a state such capital and recurring sums as may be necessary to enable that state to meet the costs of such schemes of development as may be undertaken by the State with the approval of the government of India for the purpose of promoting the welfare of the scheduled tribes in that state or raising the level of scheduled tribes in that state or raising the level of administration of the scheduled areas therein to that of the administration of the rest of the areas of that state.