Question
Assertion (A): Cities generate about 66% of India's GDP
and 90% of government income. Reason (R): Urban local bodies (ULBs) receive less than 1% of GDP as funding from state and national governments.Solution
• Assertion: True. Cities contribute significantly to GDP and government income. • Reason: True. ULBs receive less than 0.5% of GDP, which is insufficient. However, this is not the cause of their economic contribution but a reflection of fiscal challenges.
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