Under the federal system, sources of revenue for each level of government are specified to ensure its

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Educational autonomy

Behavioural autonomy

Financial autonomy

Social autonomy

answer is C.

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Detailed Solution

Under the federal system, sources of revenue for each level of government are specified to ensure its financial autonomy. In 1992, a significant amendment was made to the Constitution of India, making the third-tier democracy more powerful and effective. The 74th amendment, 1992 vested autonomy and power to all the urban bodies (including functional and financial power). The State governments are made for sharing some of their powers and revenue with local government bodies.
The state legislature may-
1)      Permits a municipality to levy, collect, and appropriate taxes
2)      Allot to the city some taxes, levies, tolls, and fees levied and managed by the state government
3)      Permit grants-in-aid to the municipalities
4)      Provide for the creation of funds for accrediting all sums of money to the municipalities.

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