[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/ief/reveye/v44y2006i2p127-186.html
   My bibliography  Save this article

A Practitioner´s Guide to Intergovernmental Fiscal Transfers

Author

Listed:
  • Anwar Shah

    (World Bank Institute (Washington DC, United States))

Abstract
Intergovernmental fiscal transfers are a dominant feature of sub-national finance in most countries. They are used to ensure that revenues roughly match the expenditure needs of various orders (levels) of sub-national governments. They are also used to advance national, regional and local area objectives such as fairness and equity and creating a common economic union. The structure of these transfers create incentives for national, regional and local governments that have a bearing on fiscal management, macroeconomic stability, distributional equity, allocative efficiency and public services delivery. This paper reviews conceptual, empirical and the practice literature to distill lessons of policy interest in designing the fiscal transfers to create the right incentives for prudent fiscal managment and competitive and innovative service delivery. The paper provides practical guidance on the design of performance-oriented transfers that emphasize bottom-up, client- focused and results-based government accountability. It cites examples of simple but innovative grant designs that can satisfy grantors’ objectives while preserving local autonomy and creating an enabling environment for responsive, responsible, equitable and accountable public governance. The paper further provides guidance on the design and the practice of equalization transfers for regional fiscal equity as well as the institutional arrangements for implementation of such transfer mechanisms. The paper concludes with negative (practices to avoid) and positive (practices to emulate) lessons from international practices.

Suggested Citation

  • Anwar Shah, 2006. "A Practitioner´s Guide to Intergovernmental Fiscal Transfers," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 44(2), pages 127-186, Diciembre.
    • Handle: RePEc:ief:reveye:v:44:y:2006:i:2:p:127-186
    DOI: 10.55444/2451.7321.2006.v44.n2.4088
    as

    Download full text from publisher

    File URL: https://revistas.unc.edu.ar/index.php/REyE/article/view/4088/5102
    Download Restriction: no
    File URL: https://libkey.io/10.55444/2451.7321.2006.v44.n2.4088?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Huther, J. & Roberts, S. & Shah, A., 1997. "Public Expenditure Reform under Adjustment Lending. Lessons from World Bank Experiences," World Bank - Discussion Papers 382, World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cruz, Tassia & Silva, Talita, 2020. "Minimum Spending in Education and the Flypaper Effect," Economics of Education Review, Elsevier, vol. 77(C).
    2. Lavado, Rouselle F. & Layug, Allan S. & Pantig, Ida Marie T. & Bolong, Leilani E., 2010. "Do Barangays Really Matter in Local Services Delivery? Some Issues and Policy Options," Discussion Papers DP 2010-03, Philippine Institute for Development Studies.
    3. Sharma, Chanchal Kumar, 2010. "Beyond Gaps and Imbalances: Re-Structuring the Debate on Intergovernmental Fiscal Relations," MPRA Paper 32145, University Library of Munich, Germany.
    4. Bodhisattva Sengupta, 2016. "Endogenous Leadership in a Federal Transfer Game," Working Papers id:11473, eSocialSciences.
    5. Schakel, Arjan H., 2008. "Validation of the Regional Authority Index," MPRA Paper 8972, University Library of Munich, Germany.
    6. Freinkman, Lev, 2007. "Intergovernmental relations in Nigeria: improving service delivery in core sectors," MPRA Paper 10032, University Library of Munich, Germany.
    7. Neyapti, Bilin, 2013. "Fiscal decentralization, fiscal rules and fiscal discipline," Economics Letters, Elsevier, vol. 121(3), pages 528-532.
    8. Aragon, Fernando, 2009. "The flypaper effect revisited," LSE Research Online Documents on Economics 58199, London School of Economics and Political Science, LSE Library.
    9. Masaki, Takaaki, 2018. "The impact of intergovernmental transfers on local revenue generation in Sub-Saharan Africa: Evidence from Tanzania," World Development, Elsevier, vol. 106(C), pages 173-186.
    10. Bischoff, Ivo, 2008. "Conditional Grants, Grant-Seeking and Welfare when there is Government Failure on the Subordinate Level," ZEW Discussion Papers 08-031, ZEW - Leibniz Centre for European Economic Research.
    11. Llanto, Gilberto M., 2009. "Fiscal Decentralization and Local Finance Reforms in the Philippines," Discussion Papers DP 2009-10, Philippine Institute for Development Studies.
    12. Tahir Yousaf & Qurat ul Ain & Yasmeen Akhtar & Wasi Ul Hassan Shah, 2022. "The Crowding in (out) Effect of Intergovernmental Transfers on Local Government Revenue Generation: Evidence from Pakistan," Hacienda Pública Española / Review of Public Economics, IEF, vol. 242(3), pages 3-28, September.
    13. Linda Veiga & Francisco Veiga, 2013. "Intergovernmental fiscal transfers as pork barrel," Public Choice, Springer, vol. 155(3), pages 335-353, June.
    14. Kumar, Surender & Managi, Shunsuke, 2009. "Compensation for environmental services and intergovernmental fiscal transfers: The case of India," Ecological Economics, Elsevier, vol. 68(12), pages 3052-3059, October.
    15. World Bank, 2013. "Impact and Implications of Recent and Potential Changes to Brazil's Subnational Fiscal Framework," World Bank Publications - Reports 20773, The World Bank Group.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anwar Shah, 2006. "A Practitioner´s Guide to Intergovernmental Fiscal Transfers," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 0(2), pages 128-186, July.
    2. Shah, Anwar, 2008. "Demanding to be served : holding governments to account for improved access," Policy Research Working Paper Series 4643, The World Bank.
    3. World Bank, 2000. "Guatemala : Expenditure Reform in a Post-Conflict Country," World Bank Publications - Reports 15481, The World Bank Group.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ief:reveye:v:44:y:2006:i:2:p:127-186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivan Iturralde (email available below). General contact details of provider: https://edirc.repec.org/data/ieuncar.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.