Federal financial relations in India and their implications for centre–Punjab financial relations

Financial relations between the centre and Punjab are crucially shaped by the Indian constitutional provisions regarding centre-state financial relations and by the pattern of these latter relations since Indian national independence. This chapter, therefore, is divided into three parts dealing with the three issues examined here: the Indian constitutional provisions regarding centre-state financial relations, the pattern of evolution of these relations and the implications of these relations for Punjab. In examining all the three issues, especially the implications for Punjab’s state finances, the focus is on the period 1966-1991.