Economics · Indian Economy
What is the primary benefit of the Planning Commission determining specific expenditure heads based on projected revenue estimates in a Core Plan?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It completely automates the distribution of central taxes to rural local bodies
- 2It keeps plan targets within realistic limits and prevents diversion of funds from priority items✓
- 3It mandates the complete privatization of the core manufacturing sectors
- 4It permanently eliminates the fiscal deficit of the Union Government
Correct answer
It keeps plan targets within realistic limits and prevents diversion of funds from priority items
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