Indian Polity · Polity
What is the primary objective behind allocating 'Performance Grants' to local bodies as recommended by the Finance Commission?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To directly settle judicial conflicts regarding boundary lines between neighboring Panchayats.
- 2To declare chosen villages as model smart communities based on external benchmarks.
- 3To distribute equal funds irrespective of performance or demographic traits.
- 4To incentivize local self-governing bodies to improve audited accounts and enhance their own revenue generation.✓
Correct answer
To incentivize local self-governing bodies to improve audited accounts and enhance their own revenue generation.
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