Expenditure-Based Equalization Transfers
AbstractIntergovernmental transfers are a major source of revenue for sub-national (regional and local) governments (hereafter SNG), representing 60 percent of their total revenue for developing countries and 33 percent for OECD countries (Shah, 2004). The continued and even growing decentralization observed in many countries calls for a better understanding of the design, role and impact of fiscal transfers. Prominent among the objectives commonly attributed to intergovernmental fiscal transfers is ‘equalization’ although exactly what this term means is often rather obscure and may differ from country to country or even over time within any one country. Our focus in this paper is specifically on those transfers specifically labeled as equalization transfers and in particular on the question of the extent to which and the method by which differences in expenditure ‘needs’ can and should be formally incorporated into such transfers.
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Bibliographic InfoPaper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper0410.
Length: 33 pages
Date of creation: 01 Nov 2004
Date of revision:
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Web page: http://aysps.gsu.edu/isp/index.html
Expenditure; Equalization Transfers; Intergovernmental transfers; sub-national government;
Other versions of this item:
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-05-07 (All new papers)
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