The Telangana State Finance Commission makes recommendations on:

Distribution of revenue between the state and local bodies
State budget
Taxation policies
All of the above

The correct answer is: D) All of the above

The Telangana State Finance Commission (TSFC) is a statutory body constituted by the Government of Telangana to make recommendations on the distribution of revenue between the state and local bodies, the state budget, and taxation policies. The TSFC was first constituted in 2014 and has since submitted two reports, in 2015 and 2020.

The TSFC’s recommendations are binding on the government, and the government is required to take steps to implement them. The TSFC’s recommendations have had a significant impact on the fiscal arrangements between the state and local bodies, the state budget, and taxation policies in Telangana.

The TSFC’s recommendations on the distribution of revenue between the state and local bodies have helped to improve the financial position of local bodies. The TSFC’s recommendations on the state budget have helped to improve the transparency and accountability of the state government’s fiscal management. The TSFC’s recommendations on taxation policies have helped to improve the efficiency and equity of the state’s tax system.

The TSFC has played a vital role in improving the fiscal management of the state of Telangana. The TSFC’s recommendations have helped to improve the financial position of local bodies, the state budget, and taxation policies. The TSFC has made a significant contribution to the development of the state of Telangana.