Fiscal Federalism

Fiscal Federalism is the idea that autonomous/federal/local regions of a state should have more control over fiscal policy of the state than the central government. Moderate versions of Fiscal Federalism can be seen in any Federal states (as an extension of Federalism), as well as in the UK(Scotland).

Fiscal Federalism is not to be confused with regular Federalism/Decentralisation as it is possible to have Fiscal Federalism without the state in question being a Federation or engaging in other forms of decentralisation.

Arguments for:
Ziółkowskiizm - People are short-sighted and Materialist in their thinking, Economic situation also changes over time and the best economic policy depends on region (An agrarian province will have different issues to a heavily urbanised one), therefore people of each province should be allowed to pick and choose what is the best fiscal policy for their province in that situation whilst other policies which are more long term should be left to the central authority. Scottish Nationalism - Scotland should have more control over its own policies, especially fiscal ones because Scottish tax money going to the Westminster government and then being not spent on Scotland is a violation of Scottish rights.

Exmaples
Full Fiscal autonomy for Soctland and Wales