Question

Discuss the divisible pool method of fiscal adjustment pointing out its advantages

Answer 1

It means that all are equal to each other.e.g. a failure is as equal as a brilliant student.

Answer 2

The divisible pool method of fiscal adjustment includes setting aside a certain portion of taxes that is then distributed equally to the states.

It enables for their to be equitable share of taxes. In addition it is quite simple to manage and administer and keeps the central government superior to other state governments.