Single Answer MCQ
Q-00001422
Explain the concept of fiscal federalism and its importance in India.
1
Fiscal federalism refers to the division of powers related to finance between different levels of government
2
Fiscal federalism is not relevant in India
3
Fiscal federalism means centralization of financial powers
4
Fiscal federalism leads to conflicts between central and state governments
Answer and Solution
Answer
A. Fiscal federalism refers to the division of powers related to finance between different levels of government
Solution:
Fiscal federalism is the division of powers related to finance between the central and state governments. It is important in India to ensure financial autonomy, equitable distribution of resources, and fiscal discipline at all levels of government.
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