Question

The Twelfth Schedule of the Constitution includes “urban poverty alleviation” as a municipal function. Which constitutional mechanism ensures funds flow to municipalities for such functions?

A Direct taxation by municipalities is unlimited.
B Devolution via State budgets, grants-in-aid under Article 280 recommendations, and state statutes implementing devolution as mandated under Part IXA and enabling statutes ensure funds, but actual sufficiency depends on state compliance.
C Municipalities receive direct grants from President.
D Municipalities can mint local currency for funding.
E Municipalities are funded only by central taxes.
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