The Federal Approach to FiscalDecentralisation: Conceptual Contours for Policy Makers

Sharma, Chanchal Kumar (2003): The Federal Approach to FiscalDecentralisation: Conceptual Contours for Policy Makers. Published in: Loyola Journal of Social Sciences , Vol. Vol. (, No. No.(2) (December 2005): pp. 169-188.

Abstract

Chanchal Kumar Sharma,in his paper demonstrates that in order for fiscal decentralisation to be effective, it must be approached federally. A federal approach is not a decentralised approach but a dynamically balanced approach; one that constantly keeps on adjusting the contrasting forces of centralisation and decentralisation to create a system that can ensure good governance in accordance with the rapidly changing global and local scenario. According to the author, the good governance of the present time has to be federally flexible and dynamically decentralised and institutions of fiscal federalism are crucial for achieving such a dynamic equilibrium. Fiscal decentralisation cannot be detached from the broader principles of fiscal federalism if it is to be successful, irrespective of the fact of whether it is being carried out in a federal or non-federal country. He argues that too much decentralisation or an overly strong central federal government precludes the survival of a constitutional federal state.

• Item Type: MPRA Paper
• Language: English
• Keywords: Federalism; Fiscal Decentralization; centralization
• Subjects: Z - Other Special Topics > Z0 - General; H - Public Economics > H1 - Structure and Scope of Government; H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government; H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations; H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H77 - Intergovernmental Relations ; Federalism ; Secession; H - Public Economics > H8 - Miscellaneous Issues; H - Public Economics > H8 - Miscellaneous Issues > H83 - Public Administration ; Public Sector Accounting and Audits

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