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Federal grants are financial transfers from a higher level of government to a lower level of government, typically from the central or federal government to state or local governments, to support specific functions, programs, or general development activities. In the context of India, these grants are transfers from the Union Government to State Governments to help them meet expenditures that cannot be sufficiently covered through their own revenue sources. Federal grants can be broadly classified into two types: unconditional or general-purpose grants and conditional or specific-purpose grants. Unconditional grants provide states with flexibility in spending, whereas conditional grants are earmarked for specific schemes like education, health, rural development, or infrastructure projects. The _______ ___ ________ _________ ____ ________ _____ _____.
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