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      Question

      Under Budget 2025–26, which measure best exemplifies

      horizontal fiscal equity between Centre and States
      A The Urban Challenge Fund Correct Answer Incorrect Answer
      B 50-year interest-free state loans Correct Answer Incorrect Answer
      C Raising FDI limit in insurance to 100% Correct Answer Incorrect Answer
      D Reduction in TDS on rent Correct Answer Incorrect Answer
      E Launch of BharatTradeNet Correct Answer Incorrect Answer

      Solution

      Explanation: These long-term loans are allocated based on reform performance and development needs , maintaining horizontal equity by supporting financially weaker yet reform-oriented states. Β 

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