Fiscal federalism
Definition
Fiscal federalism is a system of transfer payments or grants by which a federal government shares its revenues with lower levels of government. Federal governments use this power to enforce national rules and standards. There are two primary types of transfers, conditional and unconditional. A conditional transfer from a federal body to a province, or other territory, involves a certain set of conditions. If the lower level of government is to receive this type of transfer, it must agree to the spending instructions of the federal government. An example of this would be the Canada Health Transfer. The second type of grant, unconditional, is usually a cash or tax point transfer, with no spending instructions. An example of this would be a federal equalization transfer.
Fiscal Federalism Network
OECD Network on Fiscal Relations Across Levels of Government
The relationship between central and subcentral government bodies has a profound effect on efficiency and equity within the government and on macroeconomic stability of the country. The role of the OECD Network on Fiscal Relations Across Levels of Government is to provide data and analysis on these relationships between organizations at different levels of government.[1]
See also
References
Sharma, Chanchal Kumar.2005. The Federal Approach to Fiscal Decentralization. Loyola Journal of Social Sciences, XIX(2):169-88 (Listed :International Bibliography of Social Sciences, London School of Economics and political sciences]
- ^ http://www.oecd.org/department/0,3355,en_2649_35929024_1_1_1_1_1,00.html “Fiscal Federalism Network,” OECD Centre for Tax Policy and Administration, OECD.org, 17 July 2007 < http://www.oecd.org/department/0,3355,en_2649_35929024_1_1_1_1_1,00.html>.
Sharma, Chanchal Kumar.2005. The Federal Approach to Fiscal Decentralization. Loyola Journal of Social Sciences, XIX(2):169-88 (Listed :International Bibliography of Social Sciences, London School of Economics and political sciences]
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