How Did Congress Fund the Government Under the Articles of Confederation?

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When reading about the Articles of Confederation, I often see the statement that Congress could not levy taxes directly. But the national government still had war debts, diplomatic expenses, and other obligations.

How was that arrangement supposed to work in practice? Could Congress require states to contribute a set amount, and what happened if a state paid late or contributed less than requested?

I’m particularly interested in the difference between the legal system of state requisitions under the Articles and the money Congress actually received. Were borrowing and state contributions enough to cover ordinary expenses, or did payment problems routinely interrupt government operations?

It would help to connect this to the debate over federal taxing power at the Constitutional Convention without reducing the whole period to “the Articles were weak.” What arguments did supporters of the existing arrangement make for keeping revenue collection with the states?

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