Question

A high per capita GSDP is often used as a criterion by the Finance Commission for:

• A. Determining the state's borrowing capacity from financial markets.
• B. Allocating special grants for promoting tourism and cultural development.
• C. Determining the level of central assistance to states.
• D. Assessing the effectiveness of centrally sponsored schemes implemented in the state.

Answer 1

Answer:

C. Determining the level of central assistance to states.

• The per capita GSDP is one of the key indicators used to assess a state's relative economic position and determine the distribution of central funds.