Need for revenue allocation in a federal state. - SS3 Government Past Questions and Answers - page 1
What is the main reason for revenue allocation in a federal state?
To distribute funds fairly among different levels of government
To centralize power in the federal government
To promote inequality among states
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What are some functions and responsibilities of different levels of government in a federal state?
National defense, healthcare, and education
Road construction, law enforcement, and welfare programs
All of the above
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What is the principle of fiscal federalism?
Centralization of financial resources
Equal distribution of funds among states
Local control over resources and decision-making
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What can happen without revenue allocation in a federal state?
Overfunding of essential services
Equal development among states
Underfunding of essential services and unequal development
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What is the benefit of revenue allocation in promoting regional development?
Increased power of the federal government
Improved efficiency and effectiveness of funds
More unequal distribution of funds
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Why is revenue allocation necessary in a federal state?
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How does revenue allocation promote fiscal federalism in a federal state?
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