The correct answer is: a) The Finance Commission of India.
Sikkim is a special category state in India, which means that it receives special financial assistance from the central government. This assistance is provided through the Finance Commission of India, which is a body that is appointed by the President of India to recommend the distribution of central taxes among the states. The Finance Commission takes into account a number of factors, including the population of the state, its revenue receipts, and its expenditure needs, in making its recommendations.
External borrowing is the borrowing of money from foreign countries or international financial institutions. Foreign direct investment is the investment of money by foreign companies in Indian companies. Income tax collected in the state is the tax that is paid by the people of Sikkim on their income.
While all of these sources of funding can be important for a state, the Finance Commission’s assistance is particularly important for special category states like Sikkim. This is because these states have a number of unique challenges, such as their remote location and their difficult terrain. The Finance Commission’s assistance helps to address these challenges and to ensure that these states have the resources they need to develop.