Fiscal imbalance is a mismatch in the revenue powers and expenditure responsibilities of a government. When the revenue powers are divided between two or more tiers of government in a federation (i.e. center, state, local), in general, the Central government is entrusted with more financial resources. This is because due to its functional responsibilities like defence, space research, pension etc. There is always a greater demand for its expenditure requirement than its revenue resources.
great post, very informative. I wonder why the other specialists of this sector do not notice this. You should continue your writing. I'm confident, you have a great readers' base already!Top Tutor online
ReplyDelete