4. Our terms of reference may be divided broadly into the four following groups:

(1) Relations between the Centre and the units, and between the units inter se;

(2) Financial procedure, ie., relating to the budget, expenditure and Money Bills;

(3) Borrowing powers of units; and

(4) Relations of the Union with the States.

We have accordingly, for convenience, regrouped our terms of reference as follows:

(1), I, VII, VIII, IX, II

(2) X

(3) I

(4) III, IV, V, VI, XI

and discussed them, as far as possible, in the above order.