The political leadership works in different ways that are incorporated in the policies that govern the different systems, aspects and institutions. One of the most significant policies in the present economic and political institutions is the case of fiscal interrelationship between the government agencies and subdivisions. The fiscal structure in the government can be described as the functions that are governed by the fiscal policy. The fiscal policy can be defined as the main process and plan of the segregation of the annual budget of a state in a federal form of government.
The main activities that define application of the fiscal policy can be attributed to the use of the budget that is in terms of three major components or activities (Heyne, Boettke and Prychitko, 2002). One of the said indications of the application of the fiscal policy is in terms of the activities performed and implemented by the leaders that can be considered to affect the economy. The active participation of local and international groups can be considered as favorable to the proper management of the system.
This can also be related to the demand to the resources, as needed by the area of responsibility. Another is in turn the next phase wherein the demand of the covered geographic location is given the allocation of the said budget. Upon the allocation of the resources, the division of the gathered income comes next (Heakal, 2004; Heyne, Boettke and Prychitko, 2002). The said dynamics can be considered essential to the political and economic system, thus the study of the fiscal policy can be considered as important in the federal government.
In terms of the success of the policy, a particular locality cannot be isolated from the whole system, thus the study is focused on the relationships that occurs between the key participants in the government structure. These participants include the government institutions. The concern related to the functions and effects of the fiscal system of interrelatedness in government institution is the main focus of the study. This can be considered as one of the most important issue if the economy and politics of a state or nation is the main target in the study.
Since the fiscal system deals with the financial and budget aspect, it an essential factor in the determination of the financial structure of the state under study. Objective of the Study In relation to the considered importance of the fiscal policy in the status of a nation or state, the main focus of the study is the fiscal interaction between the institutions. The said objective can be achieved through specific areas of study.
To be able to determine the main function of the fiscal relationship between nations by targeting the different levels of the political system, this can be defined through the study of the different institutions. 2. To present a view on one area of the fiscal relationship between the states and countries. 3. To define the premise of application of the fiscal policies through the study of a specific state or locality 4. To present the dynamics related to the fiscal functions of the state under study through the focus on the areas such as grants, funds and the functions of such projects.