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

Question

[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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