Abstract

Fiscal federalism structure constitutes the relevant and most critical set-up numerous federalist nations across the world operate. However, practically it stands a huge challenge to sustainably manage. While several factors are often attributed to the setback, in developing states such as those of Sub-Saharan Africa, surrounding macroeconomic policy politics and government layers are often claimed exclusively responsible. Employing locality activities in West Nile and Eastern geographical regions of Uganda (East Africa), this research systematically investigated the macroeconomic policy politics-government layers-fiscal federalism structure linkages. Structural equation modeling and bootstrapping statistical results reveal that: macroeconomic policy politics-based constructs; society income support and local business overhaul, indeed predict fiscal federalism direction. Its other attribute; inter-entity fiscal promotion, holds no influence. Additionally, suspected macroeconomic policy politics-fiscal federalism structure connectivity mediator; government layers, also plays that role. Related theory-literature-practice implications are discussed.