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Should the state government be allowed to retain major shares of the central taxes collected in the respective states? I. No, the Central Government should receive the major share as most of the developmental programmes are funded by the Central Government. II. Yes, most of the State Governments are short of funds and they badly need more funds.

If only Argument I is Strong
If only Argument II is strong
If neither I nor II is strong
If both I and II are strong

Correct Answer: If only Argument I is Strong

Explanation:

Yes, Central Government should receive the major share because most of the development programmers are funded by Central Government and it also helps the Central Government to provide and manage the funds to poor states where funds are least collected.

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