---
title: "Grants-in-aid Definition and Overview | Model Diplomat"
description: "Grants-in-aid are fiscal transfers from higher to lower government tiers, crucial for funding specific schemes and supporting local institutions."
url: "https://modeldiplomat.com/learn/glossary/grants-in-aid"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- Grants-in-aid are fiscal transfers from a higher tier of government to lower tiers or institutions, made under constitutional or statutory authority to support revenue or specific schemes.
- What is the difference between Article 275 and Article 282 grants in India?
- Distinguish categorical grants from block grants.?
- Which US case upheld conditional federal grants-in-aid?
- How do grants-in-aid affect fiscal federalism in India?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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In 2021 India's Fifteenth Finance Commission recommended revenue-deficit grants under Article 275 to seventeen States and local-body grants channelled through the States, totalling several lakh crore for the 2021–26 award period.

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