Union-State Financial Relations in India

Authors: Manan Daga and Rajat Pareek, Students, West Bengal National University of Juridical Sciences, Kolkata, India



Financial relation has always been an important issue in India. The Constitution of India facilitates the financial relations between the Union and the States. In this paper, we have elaborated on what is financial relation and its constitutional aspect. Then, we have divided the analysis of Union and State’s financial relations into two parts; the northern and southern part. In the northern part, the primary focus has been made on Bengal and Uttar Pradesh, and how the financial relations with the Union have affected these states and their projects. Thereafter, an analysis for the southern states as a whole is made. After delving in so much, it became vital to look into the 1971 Census. After that, the northern model is compared to the southern model to get a wholesome understanding. Lastly, the fifteenth finance commission has been critically reviewed.

Keywords: Financial Relations, Financial relations in south, comparison of economics.


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