Fiscal Federalism on Finance and Budgeting in Essay

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fiscal federalism on finance and budgeting in public organizations.

Federalism is a political concept in which groups are bound together by a representative governing body. This is usually constitutionally divided between a central authority and political units; in the United States, the Federal Government and the 50 State Governments. The issue of federalism was actual controversial during America's revolutionary period when some feared that too much power at the Federal level would reduce State's rights. Certainly, after the Civil War the Federal Government increased its influence and power, particularly as transportation technology allowed for greater commerce and travel between States (Gerston, 2007). In its most basic form and application, fiscal federalism is a concept that is concerned with deciding which functions of government are best centralized and which are more appropriately placed in decentralized levels of government. As a study, it looks at how the expenditure side and revenue side work together, are allocated across the administration, and impact the public.

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When looking at government, the concepts of fiscal federalism are both horizontal and vertical in nature. Horizontally, or across governmental platforms, fiscal issues focus on regional imbalances and competition. Vertically, fiscal relations refer to the Federal and State governments, and who controls the disposition of dollars. It is, in fact, this imbalance that defines most of the debate about fiscal federalism's role in the efficient use of funds for needed projects (Sharma, 2011).

When we consider public administration and its overall role in society, we find some dichotomies with the idea of fiscal federalism. One could convincingly argue that public administration has changed from a strict reliance on just the Federal system to one that is inclusive of the differing, and more egalitarian, needs of the States.….....

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