Indian Polity · Center-State Relations

Historically, what was the primary financial implication for a state granted 'Special Category Status' by the Central Government?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The Reserve Bank of India managed the state's budget deficit directly through overdrafts.
2The state received 100% of all revenues collected from corporate taxes within its territory.
3The central assistance was given in the ratio of 90% grant and 10% loan.✓
4The state was completely exempted from paying any central direct taxes.

Correct answer

The central assistance was given in the ratio of 90% grant and 10% loan.

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Center-State Relations?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Indian Polity · Center-State Relations

Which movement aimed to promote Khadi, a hand-spun and handwoven cloth native to India?

Who were prominent leaders associated with the initial phase of the Telangana Rebellion (1946-1951) against the Nizam's rule and feudal landlords?

What was the immediate trigger for the Revolt of 1857?

Related Practice Questions