Indian Polity · Polity
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: A vertical fiscal imbalance exists within the framework of India's federal structure. Reason R: The Constitution assigns the most productive and elastic revenue sources to the Union government, whereas States have larger expenditure responsibilities in sectors like health and education. In the light of the above statements, choose the most appropriate answer from the options given below:
- 1Both A and R are correct but R is NOT the correct explanation of A
- 2A is correct but R is not correct
- 3Both A and R are correct and R is the correct explanation of A✓
- 4A is not correct but R is correct
Correct answer
Both A and R are correct and R is the correct explanation of A
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