Own tax revenue of Arunachal Pradesh (like sales tax, excise duties) constitutes a:

The correct answer is: b) Minor portion of the budget.

Own tax revenue of Arunachal Pradesh constitutes a minor portion of the budget. In 2020-21, own tax revenue was 11.3% of the total budget. This is lower than the national average of 16.2%. The main reason for this is that Arunachal Pradesh is a relatively poor state with a low tax base. The state government relies heavily on central government grants and loans to meet its expenditure.

The other options are incorrect for the following reasons:

• Option (a) is incorrect because own tax revenue constitutes a minor portion of the budget.
• Option (c) is incorrect because own tax revenue does exist in Arunachal Pradesh.
• Option (d) is incorrect because own tax revenue is not a variable portion of the budget. It has been relatively stable in recent years.