Consider the following statements:

  1. Finance Commission is appointed to make recommendation for devolution of non-plan revenue resources
  2. Local Authority Grant by Finance Commission is one of the sources of Revenue of the Panchayats

Which of the above is / are correct statements?

Answer: [C] Both 1 & 2

Both are correct statements. 

This question is a part of GKToday's Integrated IAS General Studies Module