Answer to Question #274139 in Macroeconomics for Jordan

Question

Write a detailed note on management of fiscal federalism in Nigeria

Answer 1

Fiscal federalism is a financial relation between units of governments in a federal government system. Fiscal federalism deals with the division of governmental functions and financial relations among levels of government.

Fiscal federalism is essentially about the allocation of government spending and resources to the various tiers of government .According to Odoko and Nnanna, it is generally believed that the devolution of certain public responsibilities to lower tiers of government still remains the best approach to the effective provision of public goods and services.

Fiscal federalism is managed to ensure the central government are expected to ensure equitable distribution of income, maintenances of macro- economic stability and the provision of public goods at the national level, and the lower levels of government are to concentrate on the provision of local goods.

Fiscal federalism is managed in Nigeria to ensure that it promotes policy innovation and political participation and accommodates diversity of opinion in the country. On the subject of policy innovation, Supreme Court Justice Louis Brandeis observed in 1932 that a single courageous state may, if its citizens choose, serve as a laboratory; and try novel social and economic experiments without risk to the rest of the country.