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Grants-in-aid...

Question

Grants-in-aid are given by the Centre to the State ___________.

A

to finance specific projects of the State

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B

to finance Centre's planned projects

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C

to control flood

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D

to increase farm output in the State

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Solution

The correct option is C to finance specific projects of the State
A grant-in-aid is money coming from central government for a specific project, hence it is not limited to only covering the revenue deficit or natural disaster.

Grants made are purpose-oriented, unless declared unconditional shall be subject to the implied conditions.

Grant money is not loan or does not have to be repaid, but it does have to be spent according to the federal government's guidelines for that particular grant.

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