Question
Under the 16th Finance Commission local body grants
structure, what is the split between Basic and Performance grants?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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