Q. The funds under Statutory Grants to the states are charged upon which of the following?

[A] Consolidated Fund of India

[B] Contingency Fund of India

[C] Public Accounts of India

[D] Both A & B

Answer: A
  • Article 275 empowers the Parliament to make grants to the states which are in need of financial assistance and not to every state.
  • Also, different sums may be fixed for different states. These sums are charged on the Consolidated Fund of India every year.
  • Apart from this general provision, the Constitution also provides for specific grants for promoting the welfare of the scheduled tribes in a state or for raising the level of administration of the scheduled areas in a state including the State of Assam.
  • The statutory grants under Article 275 (both general and specific) are given to the states on the recommendation of the Finance Commission.

Source: Source