Question

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

• A. Voluntary donations and grants from NGOs.
• B. Borrowing from international financial institutions.
• C. Sale of government-owned assets and land.
• D. Levying of fees, tolls, and user charges.

Answer 1

Answer:

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

• 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.