UPSC Prelims Practice Questions — Why are Finance Commission grants to cities still so limited?

Q1. Under whose chairmanship was the report of the 16th Finance Commission (covering the award period 2026-27 to 2030-31) submitted and tabled in Parliament?

  • A. Dr. Arvind Panagariya
  • B. N. K. Singh
  • C. Dr. Y. V. Reddy
  • D. Dr. Vijay Kelkar

Q2. In the framework of the 16th Finance Commission for urban local bodies, what does the 'Urbanisation Premium Grant' precisely refer to?

  • A. A one-time grant to states for the merger of peri-urban villages into adjoining urban local body areas and for formulating a Rural-to-Urban Transition Policy
  • B. A grant for developing comprehensive wastewater management systems in cities with a population between 10–40 lakh
  • C. A performance-based grant released to municipalities that achieve a stipulated annual growth in property-tax collection
  • D. An incentive grant exclusively for million-plus metropolitan corporations to upgrade mass-transit infrastructure

Q3. Which Union ministry is the nodal ministry through which Finance Commission grants are channelled to urban local governments?

  • A. Ministry of Housing and Urban Affairs
  • B. Ministry of Finance
  • C. Ministry of Panchayati Raj
  • D. Ministry of Statistics and Programme Implementation