After reading this article you will learn about:- 1. The Concept of Federal Finance 2. Principles of Federal Finance 3. Problems. The Concept of Federal Finance: In usual parlance federation is defined as an association of two or more states. The federal setup is characterized by the existence of a union government (Central government) on the one hand and state [...]
After reading this article you will learn about the financial relations between the Centre and the State of India:- 1. Divisions of Powers 2. Distribution of Resources 3. Grants-in Aid 4. Loans. Divisions of Powers: The constitution lucidly lists the powers and functions of different layers of government. The seventh schedule of Indian Constitution, on the basis of the financial [...]
After reading this article you will learn about the problems in financial relations between the Centre and State of India with suggestions for balanced fiscal federalism. 1. Mounting Vertical Imbalance: Vertical imbalance emerges because of disproportionate alignment of revenue sources in relation to increasing expenditure obligations by level of government. There is a situation of growing expenditure requirements and poor [...]