alleryStart learning →Why do States depend on grants from the centre?
AThe Constitution bans State budgets
BGovernors control State treasuries
CRevenue items lie with the centre
DStates cannot levy any tax
Answer & Solution
Correct answer: C. Revenue items lie with the centre
1. Revenue generating items are under central control.
2. States have big duties but meagre revenue.
3. So they rely on central grants and loans.
_Source: syllabus Political Science, Indian Constitution at Work, Chapter 7, Federalism._
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