Journal Press India^®

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Fiscal federalism is a subject of topical interest in India in view of some recent developments of historical importance, including the introduction of goods and services tax (GST). This paper discusses the three-tier federal structure of India with governments at Union, States and Local levels. It also explains the rationale behind the Centrally biased Constitution, which was envisaged by the founding forefathers as a means to reduce economic disparities and protect India’s unity, integrity and sovereignty against external aggression and internal disruption. Federalism with the cultural and ethnic pluralism has given the country’s political system great flexibility, and therefore the capacity to withstand stress through accommodation.

Keywords

Fiscal federalism; Constitution of India; Centre-State relations; Parliament

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