Question

Which of the following is a key component of the state's revenue receipts?

• A. Grants and aid from the Central Government
• B. State's own tax and non-tax revenue
• C. Borrowings from financial institutions and the public
• D. Revenue generated by State Public Sector Undertakings (PSUs)

Answer 1

Answer:

B. State's own tax and non-tax revenue

• State's own tax (like GST and motor vehicle taxes) and non-tax revenues (like stamp duty and fees) are major components of its revenue receipts.