Intergovernmental Fiscal Relations

Intergovernmental fiscal relations refer to the financial interactions and responsibilities between different levels of government, such as federal, state, and local. This includes the distribution of revenue, such as taxes, and the allocation of expenditures on public services, like education and infrastructure. These relations ensure that funds are used effectively and equitably across regions, balancing resources and needs. By coordinating financial policies, governments aim to achieve economic stability and promote social welfare, ensuring that all levels can meet their objectives and provide necessary services to their citizens.