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Which of the following is an example of a "grants-in-aid" to states?

AA loan provided by a foreign country to a state for infrastructure development.

BA tax collected by the state government and kept entirely for state use.

CFederal funds allocated to states for general revenue sharing without specific restrictions.

DMoney given by the central government to states for a specific purpose

Answer:

D. Money given by the central government to states for a specific purpose

Read Explanation:

  • Grants-in-aid are financial transfers from the central government to the states, often with the condition that they are used for specific projects or schemes.


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