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Horizontal Fiscal Balance

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How does Horizontal Fiscal Balance problem arise?

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Various states and territories do not raise sufficient own-source revenues to meet the national standards set under the constitution of the federation to provide critical services to their residents, including health care, education, social security services, telecommunications, employment, and old age security, etc. The root cause of horizontal fiscal imbalance is the fact that economic resources and activities are ...

Solution Summary

How the horizontal fiscal balance problems arises is determined.