Question

How can a government attain financial autonomy ??

Answer 1

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The federal form of government provides for distribution of powers between the Central and State Governments. To ensure financial autonomy the sources of revenue for both the central government and state governments are clearly specified in the constitution, which implies their main sources of income. For Central government the main source of income are the Income tax, custom and excise duties,sales tax, service tax which is levied on the people of India.For State Government the main source of income are the property tax, tax levied on inter state trade, toll tax, entertainment tax, income from water and electricity, Grants from the central government.These sources provide revenue to both the levels of governments which is used in providing in providing public services to the people.

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Answer 2

The Speaker said that some governors who opposed local government autonomy were of the view that local governments will collapse if their administration they handed over to the elected chairmen.

He, however, argued that state governors would have “extricated themselves from blame if they let local governments free.”

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