Indian Economy
Our financial system has provided for the transfer of resources from the centre to the states; the important means of resource transfers are

tax sharing
all of the listed here
loans
grant-in-aids

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Indian Economy
Deficit financing leads to inflation in general, but it can be checked if

government expenditure leads to increase in the aggregate supply in ratio of aggregate demand
All of the listed here
all the expenditure is denoted national debt payment only
only aggregate demand is increased

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