Indian Polity · Polity
Why is fiscal federalism considered vital for a stable federation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It ensures an equitable distribution of revenue to provide states with financial resources.✓
- 2It increases the emergency financial powers of the center.
- 3It eliminates the need for taxation at all levels.
- 4It centralizes military and defense resources.
Correct answer
It ensures an equitable distribution of revenue to provide states with financial resources.
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