Central government grants
Corporate taxes
Property taxes
Income tax
Answer is Right!
Answer is Wrong!
The correct answer is: a) Central government grants
Central government grants are the largest source of revenue for the Sikkim government, accounting for over 50% of total revenue. These grants are provided by the central government to states and union territories in India on a variety of grounds, including population, area, and fiscal needs.
Other sources of revenue for the Sikkim government include:
- Taxes: The Sikkim government collects taxes on income, property, and sales.
- Non-tax revenue: This includes revenue from fees, charges, and other sources.
- Borrowing: The Sikkim government borrows money from the central government and from other sources to finance its activities.
The Sikkim government’s revenue is used to finance a variety of activities, including:
- Education: The Sikkim government provides free education to all children up to the age of 14.
- Healthcare: The Sikkim government provides free healthcare to all citizens.
- Infrastructure: The Sikkim government invests in infrastructure, such as roads, bridges, and schools.
- Social welfare: The Sikkim government provides social welfare benefits to the poor and the elderly.
The Sikkim government’s revenue is also used to repay its debts.