In which respect have the Centre State relations been specifically termed as ‘municipal relations’?

Q. In which respect have the Centre State relations been specifically termed as ‘municipal relations’? (I.A.S. 1994)

1. Centre’s control of the State in the legislative sphere
2. Centre’s control of the State in planning process
3. Centre’s control of the State in financial matters
4. Centre’s control of the State in administrative sector

Answer: Centre’s control of the State in planning process