The Federal Approach to Fiscal Decentralisation: Conceptual Contours for Policy Makers

Loyola Journal of Social Sciences, Vol. XIX, No. 2, pp. 169-188, 2003

21 Pages Posted: 20 Nov 2006

See all articles by Chanchal Kumar Sharma

Chanchal Kumar Sharma

Central University of Haryana; Centre for Multilevel Federalism, Institute of Social Sciences; GIGA German Institute of Asian Studies

Abstract

Chanchal Kumar Sharma,in his paper demonstrates that in order for fiscal decentralisation to be effective, it must be approached federally. A federal approach is not a decentralised approach but a dynamically balanced approach; one that constantly keeps on adjusting the contrasting forces of centralisation and decentralisation to create a system that can ensure good governance in accordance with the rapidly changing global and local scenario. According to the author, the good governance of the present time has to be federally flexible and dynamically decentralised and institutions of fiscal federalism are crucial for achieving such a dynamic equilibrium. Fiscal decentralisation cannot be detached from the broader principles of fiscal federalism if it is to be successful, irrespective of the fact of whether it is being carried out in a federal or non-federal country. He argues that too much decentralisation or an overly strong central federal government precludes the survival of a constitutional federal state.

Keywords: Federalism, Fiscal Decentralization, Centralization, Devolution,

JEL Classification: H, H1, H7, H8, H11, H77, H83

Suggested Citation

Sharma, Chanchal Kumar, The Federal Approach to Fiscal Decentralisation: Conceptual Contours for Policy Makers. Loyola Journal of Social Sciences, Vol. XIX, No. 2, pp. 169-188, 2003. Available at SSRN: https://ssrn.com/abstract=945949

Chanchal Kumar Sharma (Contact Author)

Central University of Haryana ( email )

Department of Political Science
Central University of Haryana
Mahendergarh, Haryana
India
91+98222888272 (Phone)

Centre for Multilevel Federalism, Institute of Social Sciences ( email )

New Delhi
India

GIGA German Institute of Asian Studies ( email )

Jungfernstieg 21
Hamburg, 20354
Germany

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