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What is the meaning of sources of revenue for each level of government are clearly specified to ensure its financial autonomy?
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What is the meaning of sources of revenue for each level of government...
The federal form of government provides for distribution of powers between the Central and State Governments. To ensure financial autonomy the sources of revenue for both the central government and state governments are clearly specified in the constitution, which implies their main sources of income
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What is the meaning of sources of revenue for each level of government...
Sources of Revenue for Each Level of Government

Financial autonomy is an important aspect of governance, as it enables each level of government to carry out its responsibilities effectively. To ensure financial autonomy, sources of revenue for each level of government must be clearly specified.


Central Government

  • Taxes: The central government collects taxes such as income tax, corporate tax, and goods and services tax (GST).

  • Customs and Excise: The central government earns revenue through customs and excise duties on imported goods and services.

  • Dividends: The central government earns dividends from its ownership in public sector enterprises.

  • Borrowing: The central government borrows money from domestic and international sources.



State Government

  • Taxes: The state government collects taxes such as sales tax, stamp duty, and property tax.

  • State Excise: The state government earns revenue through excise duties on alcohol and other beverages.

  • Grants-in-Aid: The state government receives grants-in-aid from the central government for various schemes and projects.

  • Borrowing: The state government borrows money from domestic and international sources.



Local Government

  • Property Tax: The local government collects property tax from owners of residential and commercial properties.

  • User Charges: The local government earns revenue through user charges for services such as water supply, sewerage, and garbage collection.

  • Grants-in-Aid: The local government receives grants-in-aid from the state government for various schemes and projects.

  • Borrowing: The local government borrows money from domestic sources.



In conclusion, clearly specified sources of revenue for each level of government are crucial for financial autonomy. This enables each level of government to carry out its responsibilities effectively and efficiently.
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Read the source given below and answer the questions that follows:Sri Lanka emerged as an independent country in 1948. The leaders of the Sinhala community sought to secure dominance over government by virtue of their majority. As a result, the democratically elected government adopted a series of MAJORITARIAN measures to establish Sinhala supremacy. In 1956, an Act was passed to recognise Sinhala as the only official language, thus disregarding Tamil. The governments followed preferential policies that favoured Sinhala applicants for university positions and government jobs. A new constitution stipulated that the state shall protect and foster Buddhism. All these government measures coming one after the other, gradually increased the feeling of alienation among the Sri Lankan Tamils. They felt that none of the major political parties led by the Buddhist Sinhala leaders was sensitive to their language and culture. They felt that the constitution and government policies denied them equal political rights, discriminated against them in getting jobs and other opportunities and ignored their interests. As a result, the relations between the Sinhala and Tamil communities strained over time. The Sri Lankan Tamils launched parties and struggles for the recognition of Tamil as an official language, for regional autonomy and equality of opportunity in securing education and jobs. But their demand for more autonomy to provinces populated by the Tamils was repeatedly denied. By 1980s several political organisations were formed demanding an independent Tamil Eelam (stat e) in northern and eastern parts of Sri Lanka. The distrust between the two communities turned into widespread conflict. It soon turned into a CIVIL WAR. As a result, thousands of people of both the communities were killed. Many families were forced to leave the country as refugees and many more lost their livelihoods.Q. Which is the official language of Sri Lanka?

Read the source given below and answer the questions that follows:Sri Lanka emerged as an independent country in 1948. The leaders of the Sinhala community sought to secure dominance over government by virtue of their majority. As a result, the democratically elected government adopted a series of MAJORITARIAN measures to establish Sinhala supremacy. In 1956, an Act was passed to recognise Sinhala as the only official language, thus disregarding Tamil. The governments followed preferential policies that favoured Sinhala applicants for university positions and government jobs. A new constitution stipulated that the state shall protect and foster Buddhism. All these government measures coming one after the other, gradually increased the feeling of alienation among the Sri Lankan Tamils. They felt that none of the major political parties led by the Buddhist Sinhala leaders was sensitive to their language and culture. They felt that the constitution and government policies denied them equal political rights, discriminated against them in getting jobs and other opportunities and ignored their interests. As a result, the relations between the Sinhala and Tamil communities strained over time. The Sri Lankan Tamils launched parties and struggles for the recognition of Tamil as an official language, for regional autonomy and equality of opportunity in securing education and jobs. But their demand for more autonomy to provinces populated by the Tamils was repeatedly denied. By 1980s several political organisations were formed demanding an independent Tamil Eelam (stat e) in northern and eastern parts of Sri Lanka. The distrust between the two communities turned into widespread conflict. It soon turned into a CIVIL WAR. As a result, thousands of people of both the communities were killed. Many families were forced to leave the country as refugees and many more lost their livelihoods.Q. What is the prudential reason behind Power Sharing?

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