Question

Centre state financial relations are looked after by

Answer 1

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In Centre state financial relations Finance Commission plays an important role. According to the Constitution the President is empowered to set up a Finance Commission after every five years to make recommendations to him about the distribution of net proceeds of taxes to be divided between the centre and the states.❤️

Answer 2

The Center and state financial relations are looked after by the Constitution

Explanation:

• According to the Article 268-269 of Part XII the Constitution provides for dealing with the center-state financial relations. The Indian constitution has provided for a federal system of government.
• The Union and the state Governments are provided for their authority from the Constitution. There is independent source of revenue provided by the Constitution for the union government and the state governments.
• These inter relations between the center and the States have been mentioned in Parts XI and XII of the Constitution under the different heads of legislative, administrative and financial relations.

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