Question

Difference between conditional grants and unconditional grants

Answer 1

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The Grants and other monetary transfers to local governments are either conditional or unconditional. Conditional grants are designated for a specific purpose and may not be used for another project, while unconditional grants may be used for any purpose the recipient local government

Answer 2

The difference between conditional grants and unconditional grants are as follows:

1. Local government receives their monetary funding or grants from the government and they are conditional and unconditional.
2. The conditional grants are for a specific purpose and cannot be used for other reasons.
3. On the other hand, unconditional grants are the grants that are received by the local governments but these grants are not bound to be used for specific purposes.
4. Conditional grant is given after the granting entity makes a decision.
5. Whereas, unconditional grants are not restricted.

These are some basic but important differences between conditional and unconditional grants.