The correct answer is: d) All of the above
Sikkim is a small state in the Indian Himalayas. It is a popular tourist destination, known for its natural beauty and its unique culture. The state government has been working to develop the economy and improve the quality of life for its citizens.
One of the ways that the state government is funding its development plans is through central government grants. The central government provides financial assistance to all states in India, based on a formula that takes into account the state’s population, area, and revenue collection.
The state government also generates revenue through its own sources, such as taxes and fees. This revenue is used to fund a variety of programs and services, including education, healthcare, and infrastructure development.
In addition to central government grants and state revenue, Sikkim also receives funding from external sources, such as foreign aid and loans from international financial institutions. This funding is used to support specific projects, such as the development of hydroelectric power plants and the construction of roads and bridges.
The state government is committed to developing Sikkim into a prosperous and sustainable state. The funding that it receives from central government grants, state revenue, and external sources is essential to achieving this goal.
Here is a brief explanation of each option:
- Central government grants: The central government provides financial assistance to all states in India, based on a formula that takes into account the state’s population, area, and revenue collection. This funding is used to support a variety of programs and services, including education, healthcare, and infrastructure development.
- State’s own revenue collection: The state government generates revenue through its own sources, such as taxes and fees. This revenue is used to fund a variety of programs and services, including education, healthcare, and infrastructure development.
- External borrowing: Sikkim also receives funding from external sources, such as foreign aid and loans from international financial institutions. This funding is used to support specific projects, such as the development of hydroelectric power plants and the construction of roads and bridges.