Grant-in-aid to Panchayats is from ___________.

Correct option is B

Grant-in-aid to Panchayats is provided from the Consolidated Fund of the State, as per the 73rd Constitutional Amendment Act, 1992. This financial assistance helps rural local bodies (Panchayats) perform development activities, provide basic services, and implement centrally sponsored schemes.

Information Booster

• Funds for Panchayats are drawn from the Consolidated Fund of the State.
• Article 243H of the Indian Constitution provides for funding of Panchayati Raj Institutions (PRIs).
• Grants are recommended by the State Finance Commission (SFC).
• These funds support rural development, sanitation, and governance.
• Central Finance Commission also recommends grants from the Consolidated Fund of India.

Additional Knowledge

• (a) Public Accounts of India – Incorrect; this fund manages other government transactions, not Panchayat grants.
• (b) Consolidated Fund of the State – Correct; state governments provide grant-in-aid to Panchayats from this fund.
• (c) Miscellaneous Fund of India – Incorrect; no such financial source exists.
• (d) Estimates Committee – Incorrect; it reviews budgetary allocations but does not provide grants.