Fiscal Federalism definition is an economic way to distribute power in society
. It is very similar to the federalism definition but in this can we add the term Fiscal so we are talking more about money, economic and material recourses rather then politics and society.
There are many ways in which people can form their society and life. For example there are countries, families, nations and tribes. In this case we are dealing with a financial structure. So the main country or the groups of people which have the authority are dividing the recourses between the other groups or countries. Now there are two different situations. The first one is that the powerful area decides how much to give but also it has the right to impose and say for what to use the money. It most cases there are specific rules for the funding process. The second fiscal federalism definition is that every group gets the resource but they can do whatever they want with it. However it works on a different way. For example a certain country needs to develop the roads so they file a money request for this proposes.
There are many examples for the fiscal federalism definition. The USA, European unions, Australia and Canada. All of these countries have form a monitorial system to divide power and resources and in this way to help each other to live better. The principle is equality and democratic. If someone will take over everything or spend money unequally then a war might come. This is because one country will have more power to impose it's will on others. The history of the human kind is full with stories about how a shortage can leads to war. Usually it is about food the basic element of living but can also be about being a ruler or religious leadership.
We can also spot similar forms of fiscal federalism definition in ancient tribes. In Africa there are hunters that going away for weeks from the main village in order to gain some meat. And when they are coming back they give everything to the people of the tribe. So take the better parts according to the society structure. But in the end everyone have something to eat because they help and take care of each other.