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Grants from the Centre to the States under the recommendations of Finance Commission are known as

  • A.Plan grants
  • B.Development assistance
  • C.Statutory grants
  • D.Discretionary grants

Answer: C

Grants from the Centre to the States under the recommendations of the Finance Commission are known as statutory grants, because they are made under Article 275 of the Constitution on the Commission's advice.

Plan grants are given on the advice of the Planning Commission, and discretionary grants are decided by the Centre. 'Development assistance' is a general term, not the name for these grants.

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