Intergovernmental fiscal transfers Archives

India’s fiscal equalization system: balancing equity and efficiency

April 24, 2026 LPS Alliance

Few countries embody the promise—and complexity—of multilevel governance as vividly as India. With a federal structure spanning more than 1.5 billion people, India’s intergovernmental fiscal system sits at the heart of its development trajectory. A […]

How India’s Sixteenth Finance Commission chose stability over disruption

February 8, 2026 LPS Alliance

The Finance Commission of India (FC) is one of India’s most credible institutions. It is a constitutional body whose function is to make recommendations to the Government of India on how to divide tax revenues […]

How intergovernmental fiscal transfers shape local democracy

January 19, 2026 LPS Alliance

Intergovernmental fiscal transfers are among the most powerful, and least visible, instruments in multilevel governance systems. They shape how resources flow across levels of government, determine the fiscal space available to local authorities, and influence […]

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 […]

Fiscal Decentralization Indicators for South-East Europe

September 22, 2024 Marina Jandrevska

The ninth edition of the NALAS fiscal decentralization report comprehensively examines the development of local finance in South-East Europe (SEE) from 2006 to 2021. It delves into recent regulatory changes and compares the performance of […]

Adapting intergovernmental fiscal transfers for the future

July 30, 2024 Marina Jandrevska

Fiscal federalism aims to achieve equitable distribution of resources across jurisdictions, thereby enhancing equitable access to public services. The configuration of intergovernmental fiscal arrangements significantly impacts the subnational government’s capacity to finance and provide public […]

Intergovernmental Grants Impact on Tax Policy, Fiscal Stability and Political Economy

April 8, 2024 Marina Jandrevska

Intergovernmental grants are an important financial tool for funding subnational governments at the local, intermediate, and regional levels. These grants serve three main purposes: financing public services and investments, subsidizing services that may not be […]

The Political Economy of Redistribution in Indonesia

March 24, 2024 Marina Jandrevska

Political patronage involves politicians providing benefits or resources in exchange for political support or loyalty. Favoritism, particularly in intergovernmental fiscal transfers, can lead to unequal access to resources and perpetuate inequalities. To combat this, policymakers […]

Fiscal Decentralization in Malawi: A Detailed Situational Analysis

December 24, 2023 LPSAManager

The implementation of the National Decentralization Policy in Malawi was meant to strengthen local governments capacity to deliver social and economic services more efficiently and consolidate democracy through the following: devolving administration and political authority […]

Fixing the financial ecosystem for local governments may require non-fiscal solutions

October 10, 2023 LPS Alliance

We live in a time of great economic, social and geopolitical uncertainty. Developing countries have been dealt a particularly bad hand and need to accelerate three transitions in this uncertain time, including—first, urban and rural […]