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ARBAMI

NCHUNI
VERSI
TY

SCHOOLOFLAW

I
NDI
VIDUALASSI
GNMENT

TAXLAW

NOTEONKI
NDSOFGRANT

NAME:BEREKETASFAW

I
DNO. SSHR/
430/
12

SUBMI
TTEDTO:Mr
.Geor
geA.

SUBMI
SSI
ONDATE:25/
06/
2015E.
C
Ki
ndsofgr
ant
s
1
Grant
sar eapartfr
om syst
emsofr evenueshar
ing,i
tisknownas'equal
i
zingtransfer
s'. They
areusedforthepurposesoff
inanci
ngandsubsidi
sati
onofser
vicesandforequal
isati
onoft ax
2
orserv
icecapacit
y.
3
Grant scanbeei t
hergener alpurposeorspeci f
icpur posegr ants. Thegener alpur posegr ants
areal l
ocat edt oSt atest ospendt hemoneyi nanyar eaofpubl icpurposedesi gnat edbyt hem.It
i
schar act eri
zedbyt heabsenceofsi gnif
icantr estricti
onsont heuseoff unds,asi tisatt he
4
region'sdi scretiont ospendt hemoneyf oranypr ef er
redpur poses.Speci ficpur posegr ants
grantsar ealsor eferredtoascat egorical
gr ants.Theyar eaimedatspendi nginaspeci ficsector
suppor tedbyt hecent r
al government .Asthecondi ti
onsbecomemor especific,theSt ateswi l
l i
n
effectt hel eftwi t
hnoopt ionofbutofspendi ngt hemoneyi ntheareaspeci fi
callyrequi r
edby
thecent re.Condi tionalgr antsmayal sobef urthercl assi
fiedasmat ching(costshar i
ng)and
non- mat ching.Non- mat chinggr antsar econdi t
ionalt ransfersfrom t hefeder alt ot hest ate
gov ernment '
sbutwi thoutanymat chingrequirementont hepar tofthel att
er .Mat chinggr ants
aregi venonabasi swhenSt atescommi tt hemsel vest oshar i
ngt hecost sinor dert oreceivea
5
grantf orapar t
icularpr ogram.

Ar
ti
cl
e94(
2)oft
heFDREConst
it
uti
onsay
sthat
;

[t
]hefeder
algovernmentmaygr antto St
atesemer gency,rehabi
li
tati
onand
devel
opmentassist
anceandl oans,duecarebei
ngt akenthatsuchassi stance
andloansdonothi nderthepropor
ti
onat
edev el
opmentofSt ates.TheFeder al
Governmentshal
lhav ethepowertoauditandinspecttheproperuti
lizati
onof
subsi
diesi
tgrant
stot heStat
es.

From theabov eprovisi


onsii nferr
edt hatiti
st hedi scr
eti
onoft hefederalgovernmenttogrant
ornott ogrant.Inthi
sr espect,theconst i
tuti
ongi venthepowerf ortheFeder alGover
nmentt o
auditandinspectthepr operutil
izat
ionofsubsi diesi tt
othestates.Theki ndsofthegrant
sar e
fal
lunderspeci f
icpurpose( conditi
onal)gr ants.Gener all
y,t
hegr antswhi chstat
edundert he
FDREConst it
utionCont ai
nedt hechar acteri
sticsofspeci fi
cpurposegr ants.Theyareaimedat
spendinginspeci fi
csect orsuppor tedbycent r
algov ernment.TheFeder alGover
nmentmay
grantstostatesemer gency,r
ehabi l
it
ationanddev el
opmentassistance.

1
Fi
scal
Feder
ali
sm Teachi
ngMat
eri
al,
P138
2
Cl
air
eCharbit
,Int
ergov
ernmentalt
ransf
ersandDecentr
ali
zedpubl
i
cSpendi
ng,
at
ht
tps:
//www.google.
com,l
astaccessed2mar ch2023
3
Fi
scal
Feder
ali
sm Teachi
ngMat
eri
al,
P138-
140
4
I
bid
5
I
bid

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