Fiscal Federalism in Nigeria

ensures that unnecessary services are kept to a minimum. Secondly it requires a determination of

Efficiency: Whatever idea, thought, plan or action we do, must be efficient enough to make us reach our set goal.

2. When the government attempts to cut the economic pie into more equal slices, what happens?

The issue of federal spending power is rooted in the constitution in which provinces are given money raising powers but their provincial responsibilities and service requirements greatly outweigh the revenue they collect creating a vertical fiscal gap which provides the need or reliance for federal revenues (Ouiment, 2014). Had provinces been given greater financial authority or fairly equal levels of spending to their budgetary requirements then there would be less of a need for federal transfers and federal spending in areas of provincial jurisdiction (Grewal, 2010). As noted above, transfers such as equalization are used to bring all provinces to a national standard addressing horizontal gaps. Federal transfers and spending power then cause conflict within jurisdictions, particularly when transfers are restrictive, infringe on the provinces sovereignty or are inadequate, leading provinces to battle for separate deals to adjust persistent regional gaps, furthering the system of structural fiscal imbalance (Ouiment, 2014). The ability and intentions behind the federal governments spending power in areas of provincial jurisdiction create province wide tension with the federal government however it is maintained that spending power is a constructive force required to help provinces adapt and be flexible to the

A.5. National government largely does not govern individuals directly but gets states to do so in keeping with national policy

All the people in the United States are effected by the fiscal policies. Team C will address the how and why the U.S. budget deficits, budget surpluses and debt effect different individuals and institutions. There are a wide array of individuals effected by fiscal policy, which include tax payers, future Social Security and Medicaid users will be effected. The unemployed individuals and University of Phoenix students will be effected by fiscal policy. The U.S. financial reputation , an exporter, and importer, and effects of the GDP will also be covered about the effects of the U.S fiscal policy.

To solve this problem, government purse redistributive policy. Anderson (2000), said that, redistributive policy is a process which transfer the wealth from the wealthy people to the poor people. This allows the poor to rise their living standards. For instead, the government impose import and export taxes to a company. The collections from this taxes redistribute to the people who in need. They can get subsidy for the things that they need for their works. For example, the farmers get subsidy for their input items. Besides that, the government also implement redistributive policies by launching many programs to promote equity. For instead, United States government launches legislation to reduce the poverty rate and promote equality. That legislation

In order for a country to finance its government, tax rates are applied trying to distribute those costs as fair as possible. A benefit principle suggests that financing and its rates should be applied accordingly to those receiving a benefit. The ability to pay principle indicates that tax burdens should be applied based on the earning capability of individuals; those that earn more pay more and those earning less pay less.

A Federal Tax Law comprises of statutory provisions, administrative support and court decisions in certain cases. The first and foremost task of any Federal Tax Law is raising revenue for Federal and various state governments to absorb the cost of government operations. The role of social, economic, equity and political factors couldn’t be ignored while discussing various tax consequences during particular budget period. Nevertheless, the amount of revenue raised through this method decides the amount of services that the government can afford to provide. The forum topics for this week are explained in following broad heads:

(a) Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the non- Federal entity or the proper and efficient performance of the Federal

that, according to the Pareto principle, the gain of some over others is not injurious as

Spicer (2008) links distributive justice and resource allocation by proposing four possible approaches to establish divergent criteria, they are: democratic means, age based, personal responsibility based, and cost utility.

The ability to pay principle consisted of the of holding all taxpayers accountable of contributing to the system. All tax payers have different levels of income and other resource of wealth. Taxes should be based on individuals’ source of income and other source revenue. Taxpayers that can afford to pay more money should. The principle stated that taxes impose the same loss of utility for individuals. Equity is divided into two aspects which are horizontal and vertical. Horizontal refers the government charging the same amount to all taxpayers regardless if individuals can contribute more to taxes. Another part of equity is vertical. Vertical equity refers to treating taxpayers differently because they contribute more or less to his or

There are many different approaches to the justice of distributions in societies and there are arguments that can be made to support each of them. Three types of approaches are distribution justice based on a distributive approach that was introduced by John Rawls, emergent which was advocated by Robert Nozick and a market democratic hybrid supported by Tomasi. This paper will illustrate the basic premise of each of these approaches and the impacts that they have on the economics of a society. After briefly explaining these three approaches to just distribution I will demonstrate why Tomasi 's "Free Market Fairness", or the democratic hybrid approach, is the most logical and productive way to achieve justice of distributions while having a

My preferred recommendation here? After dividing 13% of the derivation fund equally among state and local governments, let Federal Government have 40% and the State + Local have 60% of the remainder. Then, in a spirit of true federalism and devolution of power, let the Constitution merely specify that no tier get lower than 20% . Each state then determines its own ratio between State and Local Government (to add up to 60%) based