Grants provided by the central government to states fall under which category of public finance?

CA Foundation · Business Economics · MTP · September 2026
Grants provided by the central government to states fall under which category of public finance?
(A) A. externalities correction
(B) B. revenue sharing and fiscal federalism
(C) C. rational pricing
(D) D. monetary policy

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. revenue sharing and fiscal federalism

Topics: Public Finance

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