Financial Relations between the Centre and the State in India:

1.  Distribution of Revenues: As per the Constitution, the distribution of revenues between the Centre and the States is outlined in the form of three lists – Union List, State List, and Concurrent List. The Union List includes subjects on which only the Centre can levy taxes, while the State List includes subjects on which only the States can levy taxes.
2.  Taxation Powers: The Constitution grants the power to levy certain taxes exclusively to the Centre, such as income tax, customs duties, and central excise duties. On the other hand, the States have the authority to levy taxes like sales tax, state excise duties, and stamp duty.
3. Finance Commission: The Finance Commission is constituted every five years to recommend the distribution of tax proceeds between the Centre and the States. It also suggests grants-in-aid to be given to States from the Consolidated Fund of India.
4.  Grants-in-Aid: The Centre provides grants-in-aid to the States as per the recommendations of the Finance Commission to support their finances for various purposes such as infrastructure development, education, and healthcare.
5. Borrowing Powers: While both the Centre and the States have the power to borrow, there are limits imposed by the Constitution on their borrowing powers to maintain fiscal discipline and prevent excessive debt accumulation.

In conclusion, the financial relations between the Centre and the State in India are governed by constitutional provisions that aim to ensure a balanced distribution of revenues and financial resources while maintaining fiscal stability at both levels of government.