How do state and central governments collaborate?

State and central governments collaborate to ensure smooth governance and address issues that affect the entire country. The central government sets national policies, while state governments implement these policies at the local level. Both work together on areas like education, healthcare, and infrastructure development, sharing resources and responsibilities. The central government provides financial assistance to states for various projects, and states contribute to national development goals. This cooperation ensures that the country’s needs are met in a balanced and efficient way, with attention to both national and local concerns.

This question related to Chapter 10 Social Science Class 6th NCERT.
From the Chapter 10. Grassroots Democracy — Part 1: Governance.
Give answer according to your understanding.