Explain federal finance. – InterviewSolution

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1.	Explain federal finance.
Answer» The Constitution of India has distributed the power of generating revenue and making expenditures into a three-tier government. These tiers are: The central government The state governments and The local governments (For e.g. municipality). All these three forms of government are free to make expenditures on their respective heads and to get revenue from their respective sources. This system of financing is called federal finance.

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