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Article 243H empowers State Legislatures to provide grants-in-aid to Panchayats from the ______ Fund of the State, ensuring financial support for local governance functions.
- Public
- Consolidated
- Contingency
- Reserve
Answer: Consolidated
Panchayat grants-in-aid: (a) Article 243H (73rd Amendment): Empowers State Legislatures to provide grants-in-aid to Panchayats from the Consolidated Fund of the State, (b) Types of grants: (i) General grants: For Panchayat administration, basic functions, (ii) Specific grants: For welfare of SC/ST, women, disabled; infrastructure development, capacity building, (iii) Tied grants: For implementation of specific schemes (MGNREGA, PMAY, NFSA), (c) Applications: (i) Financial support: Grants enable Panchayats to fulfill constitutional functions (economic development, social justice) despite limited own revenue, (ii) Equity: Grants can be targeted to needier Panchayats, regions, ensuring equitable development, (iii) Incentives: Performance-based grants can incentivize good governance, service delivery, (d) Challenges: (i) Timely release: Delays in grant disbursement affect Panchayat planning, implementation, (ii) Conditionalities: Tied grants may limit Panchayat flexibility in addressing local priorities, (iii) Accountability: Ensuring grants used for intended purposes, with transparency, public scrutiny, (e) Illustrates fiscal federalism: Article 243H enables State support for Panchayat finances; grants-in-aid complement own revenue, assigned revenues to ensure adequate resources for local self-governance.