Question

What are intergovernmental transfers and why are they important for local governments based upon the principles of democratic theory?

Answer 1

Intergovernmental transfer is a transfering system, specially under the democratic framework, where the subnational governments recieve grants from the national or central government. This kind of intergovernmental trasnfer is designed to facilitate the state and local givernments, and to ensure equilty between the differenent state government under a democratic framework.

The democratic framework consists of a central government and almost equally imporatnt state governments. These intergovernmenal transfers may be from central to state, stat to state, state to local, etc. These transfers are designed to facilitate the the fiscal workings of local and state government. These intergovernmental aids facilitates the provision of funds to the different subational governments in the hour of need.