Question

The 15th Finance Commission in India has recommended a significant increase in the share of tax revenues allocated to state governments. This is aimed at empowering states to address their specific development needs and priorities. What is the potential impact of this recommendation on the fiscal autonomy of state governments?

A It will reduce the fiscal autonomy of state governments.
B It will have no impact on the fiscal autonomy of state governments.
C It will enhance the fiscal autonomy of state governments.
D It will lead to a fiscal deficit at the state level.
E It will lead to a fiscal surplus at the state level.
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