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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.  

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