Which of the following bodies in India is constitutionally or statutorily mandated to allocate funds under the 'Grants-in-Aid' to local bodies based on recommendations made by the Central Finance Commission?

💡 Solution & Explanation

Grants-in-aid to rural and urban local bodies are disbursed by the Central Government from the Consolidated Fund of India pursuant to specific recommendations issued by the Finance Commission under Article 275 of the Constitution. Other institutions like NITI Aayog or the Ministry of Panchayati Raj do not possess statutory mandates to determine these constitutional fiscal transfers. The Finance Commission is a constitutional body established under Article 280 to recommend tax devolution and grants.