The correct answer is: a) Central Grants.
Central Grants are the largest source of revenue for the Meghalaya government. In 2020-21, the state received a total of Rs. 10,600 crore in Central Grants, which accounted for 58% of its total revenue. The main components of Central Grants are:
- Plan Grants: These are grants given by the central government to states for financing their development plans. In 2020-21, Meghalaya received Rs. 4,500 crore in Plan Grants.
- Non-Plan Grants: These are grants given by the central government to states for meeting their non-developmental expenditure. In 2020-21, Meghalaya received Rs. 6,100 crore in Non-Plan Grants.
Central Grants are important for the Meghalaya government as they help to meet its financial obligations. The state has a limited tax base and its own revenue generation is not enough to meet its expenditure. Central Grants help to bridge the gap between revenue and expenditure and ensure that the state can provide essential services to its people.
The other options are incorrect because they are not major sources of revenue for the Meghalaya government.
- Sale of forest produce: Forest produce is a minor source of revenue for the Meghalaya government. In 2020-21, the state earned Rs. 500 crore from the sale of forest produce.
- Tourism receipts: Tourism is a growing sector in Meghalaya, but it is not a major source of revenue for the state government. In 2020-21, the state earned Rs. 1,000 crore from tourism.
- Fines & penalties: Fines and penalties are a very small source of revenue for the Meghalaya government. In 2020-21, the state earned Rs. 100 crore from fines and penalties.