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Horizontal / Vertical Fiscal Balance

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Does HFI require vertical fiscal imbalance?

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Some degree of both HFI and VFI (Vertical Fiscal Imbalance) is inherent in almost all the countries with a hierarchical governmental structure. As a rule of thumb, in most cases, the federal or the national government collects the most taxes, whereas state or territorial administrative entities tend to spend more money on developmental work than that ...

Solution Summary

The expert determines if HFI requires vertical fiscal imbalances.