Economics · Economy
What is the primary objective of fiscal federalism?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To promote collaboration and coordination between the Central and State Governments in matters of finance and taxation✓
- 2To eliminate all taxes imposed by the central government and rely solely on state-level taxation
- 3To ensure that State Governments have complete fiscal autonomy without any interference from the Central Government
- 4To centralize all financial powers at the federal level for more effective governance
Correct answer
To promote collaboration and coordination between the Central and State Governments in matters of finance and taxation
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