Question
Describe the financial relations between the centre and states.
Answer :
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Skip in 10
The Financial relationship between the Centre (Union) and the States is provided in the constitution. The constitution gives a detailed scheme of distribution of financial resources between Union and the States.
The constitution grants the Union Parliament exclusive power to levy taxes on several items. The state legislatures enjoy similar power with regard to several other specified items. In general, the Union Parliament levies taxes on items mentioned in the union list while the state legislatures levy taxes on items mentioned in the state list.
The subjects on which
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