Within federal nations, there has been a noticeable shift in power and resource sharing, with a new trend toward devolving budgetary responsibilities to subnational governments. Currently, in most developing nations, the national government is more concerned with revenue raising than spending. However, decentralization implies a future where national and local sovereignty coexist in the fiscal situation within the structure of intergovernmental relations. The change is complex, requiring a delicate balance between localized efficiency and overall stability. The question is: will subnational actors’ intimate knowledge of local needs guide effective spending, or will central authority reunite the scattered threads? Only time will tell.