Power Shifts in Intergovernmental Relations, a Result of Fiscal Federalism

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…intergovernmental relations are more inclined to favor the states, as a power shift to states is being promoted to reduce the size of the federal government. The roles of the national and state governments continually change in accordance with the state of the nation and the state of politics, and money is also an integral factor in the evolution of intergovernmental relations. Thus, fiscal federalism has a prevailing role in the shaping of the nation.