Principles of federal grants : with particular reference to the Australian federation.

The purpose of this essay is to examine the different possible bases upon which grants may be made from the 7ederal Government to the several State Governments in a Federation. The basic concept of federalism is sufficiently clear for general principles to be developed which will be applicable to any Federation. Nevertheless there are quite important differences between the main Federations of the present time. Each has evolved gradually and its form has been influenced by varied historical developments. It would be true to say that although general principles which will be valid for all Federations may be discovered, the application of those principles nvy differ in particular detail. Consequently, the examination which follows has boon made with direct reference to conditions in the Australian Federation. Australian terminology will be used, and at a later stage an examination will be made of the various types of grants made by the Federal Government in the Australian Federation. Despite the limitation of the analysis to a particular Federation, it is felt that the examination could be extended along the same lines to include the other maJor Federations. The examinatior will be divided into three parts. The first will establish alternative principles upon which federal grants could be made, and from the alternatives establish the principle which would give the most beneficial results. The second will analyse existing practice in Australia in the light of the principles which have emerged, and the third will draw conclusions as to possible lines of future development.