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In addition to taxes, what other revenue sources does an SFC typically recommend for local bodies?

AVoluntary donations and grants from NGOs.

BBorrowing from international financial institutions.

CSale of government-owned assets and land.

DLevying of fees, tolls, and user charges.

Answer:

D. Levying of fees, tolls, and user charges.

Read Explanation:

  • While SFCs deal with grants and tax devolution, they also emphasize the importance of local bodies generating their own resources.

  • This includes recommending the power to levy and collect fees for services like water and sanitation, tolls for local roads, and other user charges.


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