Question

What are the different modes of transfer of funds from the center to the states? Discuss in 500 words..

Answer 1

There are diverse layers of government with particular power and duties characterized by the Indian Constitution. Considering the corrections made so far the Constitution accommodates three layers of the administration: Central, State, and Local. In order to do its obligations, the legislature at each level has been allocated forces to impose taxes on people and associations in view of criteria, for example, pay, consumption, production and certain monetary exchanges.

The significant wellspring of income for the central government is wage charge, central excise, and customs duties. Then again, there is an extensive rundown of assessments doled out to the states (counting charges on mixed refreshments, rural salary, and land) however the significant wellspring of duty income for the states is the sales tax. The tax base of the local governments is constrained to neighborhood administrations and production.