The Centre-state relations in India are crucially shaped by the Indian constitutional provisions regarding the Centre-state financial relations and by the pattern of these latter relations as has developed since Indian national independence. This paper, therefore, is divided into three parts. In Part I, I shall describe briefly the Indian constitutional provisions regarding the division of financial powers and responsibilities between the Centre and the states; in Part II, I shall discuss the structure of these financial relations as have developed since the present Indian Constitution came into force after the Indian national independence and in Part III, I shall attempt to draw out the implications of the conclusions from Part I and Part II for Centre-Punjab financial relations.
