Question

The recommendations on the devolution of funds from the state to local bodies typically consider which of the following criteria?

• A. Area and population.
• B. Financial needs and fiscal capacity.
• C. Fiscal discipline and performance.
• D. All of the above.

Answer 1

Answer:

D. All of the above.

• SFCs use a combination of criteria to ensure an equitable and fair distribution of funds.

• This includes basic indicators like area and population, as well as performance-based metrics that reward fiscal responsibility and efficiency.