Fiscal Federalism Term Paper by Top Papers

The paper discusses how federal forms of government must incorporate the fiscal needs and requirements of lower levels of government. The paper explains that while lower levels of government in Canada which are the Provincial governments and the local governments do have methods at their disposal to raise revenues, the federal government is obligated to share some of its revenues with these lower level governments. The paper describes how fiscal federalism is the system by which federal governments transfer funds in the form of grants or other financial instruments to lower levels of government (Vaillancourt). The paper clarifies that in this sense, fiscal federalism is a revenue sharing program between a federal or central government and the other levels of government beneath it.