Economics · Economy
A compositional shift from tied grants to tax devolution in the transfer of resources from the Centre to the States primarily causes:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A complete lack of fiscal space to carry out specific-purpose transfers
- 2A demand from States to increase corporate tax rates
- 3An increase in the share of unconditional transfers to States✓
- 4An additional fiscal burden on the Centre
Correct answer
An increase in the share of unconditional transfers to States
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