Consider the following statements:
1. Local Government in India is an independent tier in the federal system
2. Local Government finances are provided by legislations
Which among the above statements is / are correct?

Answer: [C] Both 1 & 2 are correct

Local government is an integral part of the three tier system of government. The constitution of the Indian Republic is federal in character. It provides for three levels of government, central, state and local. The first statement is a correct statement. Second statement is also correct. Power of taxation comes via state law.

This question is a part of GKToday's Integrated IAS General Studies Module