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Although China's unitary fiscal system differed from India's federal structure, they share similar problems related to fiscal federalism, such as the presence of multilevel government, bureaucracy, corruption and erosion of capital. In both the countries, the problems like inefficiency and macro stability arose at a local level due to lack of adequate tax bases for the expenditure responsibilities that had been assigned by law or through politico-bureaucratic decisions of the states. The economists felt that greater local autonomy could contribute to the economic development of both China and India.