how did center-state relations undermine the spirit of federalism? please give me the best reason so that I can understand
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Financial Centre-State Relations:
Articles 268 to 293 in the Indian constitution deal with the financial aspect of centre-state relations in India. It mainly deals with the imposition and collection of taxes. These are categorised as follows:
- Taxes levied by the centre but collected and used by the states: The stamp duties, Excise duties, medicinal and toilet preparations come under this.
- Taxes levied and collected by the centre but given to the states: The property tax, taxes on goods carried by railways, Sea, airways and so on come under this.
- Taxes levied and collected by the centre but distributed between centre and states: Income tax other than corporate tax and such other residual taxes come under this.
- In addition to this, Centre also gives many grants and loans to the states from time to time.
These are some reasons by which center-state relations undermine the spirit of federalism.
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