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Horizontal Fiscal Balance

Explain the term Horizontal Fiscal Imbalance (HFI)

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Horizontal fiscal imbalance is the fiscal imbalance that exists due to uneven distribution of revenue resources between the various provinces/ states or territories in a country. It is observed that at least some fiscal disparities always exist between different regions within a country and between different localities with regions themselves. In part, ...

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The expert explains the term horizontal fiscal imbalances.