Introduction
Federalism is a system of government that diversifies power into different levels, such as regional, local, and national. At the same time, an important aspect is the issue of budgeting at various levels of government since the government plays a decisive role in making such decisions (LĂłpez-Santana & Rocco, 2021). In this regard, the role of federalism is seen in forming a system for allocating resources for the various needs of the regions. In addition, the task of federalism is to maintain the constitutional order in the country. In this regard, it is essential to analyze the influence of these aspects on the dynamics of the state budget.
Maintaining Constitutionally Limited Federal Government
The constitutional limitations of the federal government are determined critically by the system of federalism. At the same time, this should be ensured thanks to the principle of division of power into separate structures and the implementation of the principles of checks and balances (Newbold, 2020). This can provide the state with a reliable system of government that will respect the principles of democracy and equality.
Federalism implies the division of power into local governments that regulate the life of society in certain areas and the general nationwide (Rubin, 2019). Regions of a state in this system may have different names, such as regions, governorates, provinces, or states, as in the United States. Such a system allows for the maintenance of the effectiveness of management and prevents the concentration of power in the hands of one person.
At the same time, in power distribution, each subject has special powers that are evenly distributed depending on which regions are subject to management. Each government department is responsible for a designated area of the country, and a specific authority manages all aspects. The central federal government takes over more global government functions such as defense, foreign affairs, financial policy, and foreign trade relations (Newbold, 2020). In addition, the central government plays a vital role in determining policies regarding the health system, which is usually general for the whole country. This distribution of responsibilities helps everyone to perform their duties more effectively without dispersing attention.
Federalism is also an essential element in protecting the rights and freedoms of citizens, as it reliably protects citizens and ensures sufficient uniform levels of government. This division and organization of different levels of government open up new opportunities for political action, such as special regulations and standards that would be relevant only to a specific region (Fallon, 2019). In addition, it also provides a decentralized approach that contributes to greater freedom of citizens, as it allows them to choose different values by moving from region to region.
An important element of federalism that helps to manage is the system of checks and balances. Thus, each structure of government influences others, preventing them from exceeding their powers. This helps to maintain honesty and transparency in the performance of government functions, protecting citizens from violating their rights.
The Impact of Federalism on Budgeting
Federalism as a form of government significantly influences the formation of the state budget at the national level. This is determined by the fact that it is responsible for the distribution of financial resources necessary for the country, which can be directed to areas that require it most (Gruber & Sommers, 2020). However, along with the increased convenience that federalism provides, it brings some downsides to the budgeting process.
The first and foremost function of fiscal federalism is the compilation and distribution of monetary resources depending on the needs of each area. At the same time, funds can be diversified both at the national and local-regional levels. To finance specific programs, different regions can receive grants and tranches from the state to maintain certain cities or territories (Csehi, 2020). At the same time, the distribution system can raise issues with certain complexities because coordination and communication between different levels of government can be complex.
An essential advantage of federalism is that it allows for various variations in the policies that are implemented in the regions. Regional policies can help develop certain areas that need improvement (Epstein, 2014). This can play an important role in the development of innovation in the country as a whole, which positively affects meeting the needs of specific regions. At the same time, such opportunities open up certain disadvantages, such as potential inconsistency in the implementation of policies in different regions (Epstein, 2014). In addition, such strategies can create development gaps in different regions of the country.
An important aspect of federalism is negotiation between the various branches of government. They must work and cooperate in harmony to avoid misunderstandings and divisions that may arise from differences in policies and actions (Gruber & Sommers, 2020). The budgeting process can become a subject of discussion if specific stakeholders are not sufficiently satisfied as a result of the agreements adopted. The distribution of revenues and the establishment of government goals form specific target points, the achievement of which should be one of the main goals of federalism.
The Impacts of Federal Agency Spending on Public Budgeting
Expenses that the federal agency records play a significant role in the formation of the country’s general budget at all levels of government. A federal agency is funded directly by a central government agency, thus ensuring its performance (Magdalena & Suhatman, 2020). Political priorities are essential in this regard since the distribution of financial resources can be directed to meet the interests of specific interest groups. As a result of such work, not all agencies and divisions can be satisfied with the distribution scheduled by the central government. Thus, federal influence on the distribution of the budget at all levels in the country can significantly impact many functions of local and general bodies and policies.
The interaction of regional and central policies in the field of budgeting must be fully coordinated in order to achieve results. Such a consensus can significantly affect the final effects that will be achieved through the correct allocation of funds (Onifade et al., 2020). One of the main tasks of the federal government is to coordinate the allocated funds with the goals and parameters set by the leadership. Such relationships between different bodies and categories of offices and agents can have a beneficial effect on the implementation of standards and regulations.
Judeo-Christian Analysis of the Concepts of Federalism in Public Budgeting
Federalist values and principles are closely related to the Judeo-Christian paradigm. The diversity in these topics determines which public budgeting policies are most effective. Traditions can have a strong influence on how the authorities will determine the fundamental aspects of the formation of state budgeting.
One of the main aspects of Judeo-Christian thought is subsidiarity, which is emphasized by the values of federalism (English Standard Version Bible, 2001). This can be seen in decentralization and a strong distribution of decision-making regarding budgets. Thus, regional governments have the power they need to make different decisions about budgets for their regions.
Another critical aspect of Judeo-Christian values is the concept of justice, which is firmly rooted in federalism as a form of government. Fairness is required to ensure that the distribution of financial resources can be carried out most efficiently and correctly. This means that the various regions should be financed according to their primary needs. Thus, the federal system is obliged to prioritize the distribution of budgets for specific areas and policies (Seidel, 2019). Providing all citizens with the same services and standards should be celebrated as accurate for the majority, which requires a sufficient level of awareness of their needs. Federalism as a system of government makes it possible to allocate financial resources in such a way as to maintain equality, which corresponds to the Judeo-Christian moral standards.
Conclusion
Federalism plays a decisive role in the distribution of funding and the creation of monetary policies among different regions at all levels. With the help of the analysis carried out, one can more deeply understand how the country’s federal structure can influence the determination of the need for the financial distribution of funds. The constitutional limitation of the federal government can be enforced through the decentralization of power and the system of checks and balances, which is an additional factor for the normalization of government institutions. The Judeo-Christian analysis also suggests that the principles of federalism can be applied to uphold national values and standards of political transparency and fairness. Thus, federalism has a significant impact on budgeting practices at all levels.
References
Csehi, R. (2020). Federalism and the stringency of balanced budget rules–A comparative study of Canada, the European Union, and the United States of America. Regional & Federal Studies, 30(1), 73-91. Web.
English Standard Version Bible. (2001). ESV Online.
Epstein, R. (2014). The classical liberal constitution: The uncertain quest for limited government. Harvard University Press.
Fallon, R. H. (2019). Bidding Farewell to Constitutional Torts. California Law Review, 107(3), 933-998. Web.
Gruber, J., & Sommers, B. D. (2020). Fiscal federalism and the budget impacts of the Affordable Care Act’s Medicaid expansion (No. w26862). National Bureau of Economic Research. Web.
LĂłpez-Santana, M., & Rocco, P. (2021). Fiscal federalism and economic crises in the United States: Lessons from the COVID-19 pandemic and great recession. Publius: The Journal of Federalism, 51(3), 365-395. Web.
Magdalena, S., & Suhatman, R. (2020). The Effect of Government Expenditures, Domestic Invesment, Foreign Invesment to the Economic Growth of Primary Sector in Central Kalimantan. Budapest International Research and Critics Institute-Journal (BIRCI-Journal), 3(3), 1692-1703. Web.
Newbold, S. P. (2020). A transformative era: The Roberts Court, constitutional interpretation, and public administration. Administration & Society, 52(6), 862-889. Web.
Onifade, S. T., Çevik, S., Erdoğan, S., Asongu, S., & Bekun, F. V. (2020). An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy. Journal of Economic Structures, 9(1), 1-13. Web.
Rubin, I. S. (2019). The politics of public budgeting, 9th ed. SAGE Publications, Inc.
Seidel, A. L. (2019). The founding myth: Why Christian nationalism is un-American. Union Square & Co.