Discretionary Grants Concept

Deep Dive: UPSC Practice

With reference to "Discretionary grants", consider the following statements: 1. It is called discretionary grants because there is no constitutional obligation for the centre to give these grants to states. 2. States can make these grants only for those public purposes which are within their legislative jurisdictions. 3. Centre allots these grants to states based only on the recommendation of the Finance commission. How many of the above given statements are correct?