On the financial autonomy of rural local bodies in India, the chapter notes that:
AThey raise about 25 percent of total government revenues and spend about 20 percent
BThey raise nearly the same share of revenue as they spend, ensuring local self-reliance
CThey raise about 0.24 percent of total revenue but account for about 4 percent of spending
DTheir revenue collection is rising rapidly thanks to the State Finance Commission grants
Answer & Solution
Correct answer: C. They raise about 0.24 percent of total revenue but account for about 4 percent of spending
Page 16 says rural local bodies raise 0.24% of total revenues collected but account for 4% of total expenditure, making them heavily grant-dependent.
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