A major source of revenue for the Sikkim government is:

Central government grants
Corporate taxes
Property taxes
Income tax

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.

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