Federalism and the Reduction of Corruption

In our present system, most of the government revenues are transmitted to the central government, located in a distant place. Moreover, considering that these funds are “out of sight” the people could not readily monitor the same. “They do not know where to find these funds.”

In the federal system, considering that not most of the government revenues would be transmitted to the central government, and the taxes that would be collected by the states would be retained at their level, the people could readily check if such funds were appropriately use for public purpose.
When there is clear delineation as to the transmittal of government revenues, there is lesser incidence of its wastes due to inefficiency or corruption.