How does financial devolution among States work and why is it important
Get an explanation about the financial devolution process among States and its significance.
- Financial devolution among States refers to the distribution of financial resources from the central government to state governments.
- It is important as it fosters fiscal autonomy and empowers state governments to tailor policies to local needs.
- This process aids in promoting balanced regional development by ensuring that resources are allocated efficiently and effectively.
- Financial devolution also promotes accountability and transparency in governance as state governments are responsible for managing the allocated funds.
- It helps in strengthening federalism by giving states more control over their finances and reducing their dependence on the central government.
- Overall, financial devolution enhances governance, accountability, and economic development at the state level.
Answered
a year ago