Consider the following Assertion and Reason:
Assertion (A): The Constitution of India now provides a mechanism for a regular flow of funds to Panchayati Raj Institutions.
Reason (R): Panchayati Raj institutions have been greatly handicapped in the performance of their assigned duties by paucity of funds.
Which of the following is correct with respect to the above?
Correct answer: A
Explanation
The 73rd Amendment added the State Finance Commission mechanism under Article 243-I to ensure a regular flow of funds to Panchayati Raj Institutions, so the Assertion is correct. PRIs had long been crippled by a shortage of funds, which is exactly why this funding mechanism was created, so the Reason correctly explains the Assertion.