According to Article 275 of the Constitution of India:
1. Every state in India should be given Grants-in-aid
2. The allocation of grants in aid should be uniformly distributed on the basis of population / Income of the concerned state
3. The role of Finance Commission is to ensure that the grants-in-aid reaches every state
Choose the correct option from the codes given below:
The first statement is incorrect because article 275 does not say that every state of India is to be assigned some grant in aid. The basic rule is to have a system of Grants-in-aid to the “needy states”. The grants-in-aids are to be given out of the consolidated fund of India and the amount is fixed by the Finance Commission, using whatever formula it takes as a feasible formula. This means that some states can be kept out of grant-in-aids. Thus statement 2 is also incorrect, there is no need of uniform distribution. The statement 3 also mention that “grants-in-aid reaches every state as per the provisions of the Constitution of India” is incorrect.
This question is a part of GKToday's Integrated IAS General Studies Module