The practice of the government is called REVENUE SHARING. Revenue sharing take place when a government shares a portion of its tax income with the other governments. One example is the state governments that can share revenue with local governments while the national governments can be able to share revenue with state governments, the amount of revenue shared is determined by law. In general, the governments that get hold of the monies are open from any conditions about or controls on how to use them. In some cases, though the getting government may be essential to match the amount settled.