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
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
What is the principle of fiscal federalism?
Centralization of financial resources
Equal distribution of funds among states
Local control over resources and decision-making
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
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
Why is revenue allocation necessary in a federal state?
How does revenue allocation promote fiscal federalism in a federal state?
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