Fiscal equalization Archives – Decentralization Net

Intergovernmental fiscal transfers and fiscal equalization in a time of consolidation

July 25, 2025 LPS Alliance

During periods of fiscal consolidation, governments must balance tighter budgets with equitable service delivery. This balance is a particular challenge in devolved countries, where central fiscal authorities might be inclined prioritize macroeconomic balance and fiscal […]

Using specific–purpose grants to achieve development goals

March 5, 2022 LPSAManager

Decentralization has been increasing in developing countries, oftentimes, with the encouragement of development partners. It is estimated that intergovernmental transfers account for about 60 per cent of total local government revenues in developing countries. Given this trend, the question […]

The spatial and economic impact of fiscal equalization in Germany

November 1, 2021 LPS Alliance

Many countries conduct spatial development policies targeted at economically lagging regions within their territory. Place-based policies often take the form of discretionary spending by higher-order government layers, such as the federal level, to subsidize investment […]

Fiscal Equalization of Croatia’s Local Government Finances

July 18, 2021 Tianyu Chen

Fiscal decentralization and equalization are important tools to empower local government agencies in terms of financial autonomy and capacity building. The Ministry of Finance of Croatia adopted a fiscal equalization formula in 2018 with the […]