What is the relationship between the Consolidated Fund of the State and the grants-in-aid provided to municipalities?
The relationship between the Consolidated Fund of the State and the grants-in-aid provided to municipalities is that the grants are given from the Consolidated Fund to improve the financial position of municipalities. These grants are allocated by a Finance Commission, which makes recommendations on this matter as well as other matters related to the sound finance of municipalities. The Governor then lays these recommendations before the state legislature along with an explanatory memorandum detailing any action taken on those recommendations.