UPSC CAPF AC 2020 Paper

Statement (2) and (3) are correct as per Article 243-G of the Constitution of India provides that the States/UTs may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government and to prepare plans for economic development and social justice and their implementation including those in relation to the matters listed in the Eleventh Schedule. As per Article 243-H of the Constitution, State Legislatures have been empowered to enact laws:
- to authorise a Panchayat to levy, collect and appropriate some taxes, duties, tolls and fees;
- to assign to the Panchayat, some taxes, duties, tolls levied and collected by the State Government;
- to provide for making grants-in-aid to the Panchayats from the Consolidated Fund of the State;
- to provide for Constitution of such funds for Panchayats for crediting all money received by or on behalf of Panchayats.