Tag Archives | Centre and State

After reading this article you will learn about the problems in financial relations between the Centre and State of India with suggestions for balanced fiscal federalism. 1. Mounting Vertical Imbalance: Vertical imbalance emerges because of disproportionate alignment of revenue sources in relation to increasing expenditure obligations by level of government. There is a situation of growing expenditure requirements and poor [...]

After reading this article you will learn about the financial relations between the Centre and the State of India:- 1. Divisions of Powers 2. Distribution of Resources 3. Grants-in Aid 4. Loans. Divisions of Powers: The constitution lucidly lists the powers and functions of different layers of government. The seventh schedule of Indian Constitution, on the basis of the financial [...]