Multiple choice

Grant in Aid from foreign countries is a

  1. source of tax revenue for central government

  2. source of non-tax revenue for central government

  3. source of non-tax revenue for state government

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is a source of non-tax revenue for central government. The grant in aid from foreign countries is a financial assistance. This financial assistance is received by central government of India and it is not earned by imposing any tax. The tax is imposed on the citizens of India, but grant in aid is received from foreign countries.

Keep practicing — related questions