Welcome to your 01.07.2026
Statement I:
In India's fiscal federal framework, States undertake a larger share of public expenditure than their share in revenue-raising powers, making fiscal deficits a structural feature rather than necessarily an indicator of fiscal mismanagement.
Statement II:
Even States with relatively strong own-tax revenue mobilisation may continue to rely on market borrowings if transfers from the Union are insufficient to match their expenditure responsibilities.
Statement III:
Since States cannot independently create money or freely determine their borrowing limits, expanding capital expenditure generally requires either higher revenues, greater fiscal space, or additional borrowing within the prescribed framework.
Which of the following relationships among the above statements is/are correct?
Options:
III. The effectiveness of ICJS depends not only on digital infrastructure but also on interoperability among institutions and uniform implementation across States.
Which of the following information/evidence support(s) the above statements?
Select the correct answer using the code given below:
Which of the statements given above are correct?
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