Statutory grants to states by the Union government, under Article 275 of the Constitution, are primarily recommended by which body?

Correct option is B

The correct answer is (b) Finance Commission.
• Under Article 275, statutory grants are provided to certain states based on the recommendations of the Finance Commission to meet special needs or assist development schemes.
Information Booster:
• Finance Commission is constituted every five years under Article 280.
• It recommends distribution of tax revenues between Centre and States.
• Grants are given to help states manage revenue deficits and fund special areas.
• The 16th Finance Commission (2025–30) is chaired by Arvind Panagariya.
• These grants ensure fiscal balance and equitable development among states.
Additional Knowledge:
• Article 282 allows both Centre and States to give discretionary grants.
• Finance Commission recommendations are advisory but influential.
• Earlier commissions introduced performance-based grants (e.g., sanitation, environment).
• Statutory grants differ from centrally sponsored schemes.