Multiple choice

In India the principal source of a state's revenue is

  1. gain from government companies/enterprises

  2. from taxes and loans

  3. grants/foreign aid from other countries

  4. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Indian states primarily derive their revenue from taxes (state GST, VAT, stamp duty, land revenue) and loans (market borrowings, central loans). These constitute the major sources of state government income for funding development and welfare programs.