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      Question

      Under the 16th Finance Commission local body grants

      structure, what is the split between Basic and Performance grants?
      A Basic 70% and Performance 30% Correct Answer Incorrect Answer
      B Basic 75% and Performance 25% Correct Answer Incorrect Answer
      C Basic 80% and Performance 20% Correct Answer Incorrect Answer
      D Basic 85% and Performance 15% Correct Answer Incorrect Answer
      E Basic 90% and Performance 10% Correct Answer Incorrect Answer

      Solution

      Local body grants under the 16th Finance Commission are split into Basic grants (80%) and Performance grants (20%). This means the bulk of allocations are assured through the basic component, while a smaller but defined portion is linked to meeting performance-related requirements. Entry conditions for eligibility include constitution of local bodies as per the Constitution, publication of audited accounts, and timely formation of the State Finance Commission.

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