Revenue Sharing Federal Government

From 1972 to 1986 when revenue sharing was abolished upwards of 85 billion of federal money was distributed to states cities counties towns and villages.

Revenue sharing federal government. Citation needed the united states government implemented revenue sharing between 1972 and 1986 in the form of congressional appropriation of federal tax revenue to states cities counties and townships. Unlike categorical grants that are program specific revenue sharing provides flexibility to subnational political jurisdictions in using federal funds tailored to their special needs. In the unique revenue sharing program in the united states during 1972 86 money collected in federal taxes was given to state and local governments. Finally recipients of general revenue sharing faced the least restrictions on the use of federal grants.

Forms of revenue sharing have been used in several countries including canada india and switzerland. For example the canadian federal government has an agreement to share gasoline tax revenue with its provinces and territories. Revenue sharing is a type of fiscal federalism whereby the federal government allocates revenue to state and local governments with little or no strings attached.