According to Article 275 of the Constitution of India:
1. Every state in India should be given Grants-in-aid
2. The allocation of grants in aid should be uniformly distributed on the basis of population / Income of the concerned state
3. The role of Finance Commission is to ensure that the grants-in-aid reaches every state
Choose the correct option from the codes given below:

Answer: [D] None of the statements 1, 2 or 3 is correct

The first statement is incorrect because article 275 does not say that every state of India is to be assigned some grant in aid. The basic rule is to have a system of Grants-in-aid to the “needy states”. The grants-in-aids are to be given out of the consolidated fund of India and the amount is fixed by the Finance Commission, using whatever formula it takes as a feasible formula. This means that some states can be kept out of grant-in-aids. Thus statement  2 is also incorrect, there is no need of uniform distribution. The statement 3 also mention that “grants-in-aid reaches every state as per the provisions of  the Constitution of India” is incorrect.

This question is a part of GKToday's Integrated IAS General Studies Module