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Question

Which of the following statements about the importance of the State Finance Commission in the scheme of fiscal decentralization is correct ?

A Arbitrating on the claims to resources of the state government by the local bodies makes the state government more accountable
B The recommendations impart greater stability and predictability to the transfer mechanism
C The accepted recommendations of the SFC are fully implemented
D The SFC invariably consists of people of eminence and competence

Answer & Explanation

Answer: The recommendations impart greater stability and predictability to the transfer mechanism

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