Principles of Fiscal Decentralization

Unit 4: Intergovernmental Fiscal Transfers
 
Intergovernmental transfers, often considered the third pillar of intergovernmental fiscal relations, form the cornerstone of subnational government financing in most developing and transition countries. The general term “transfers” is often used to refer to a number of different kinds of public financing instruments between different levels of government, including intergovernmental grants, subsidies, and subventions; even the sharing of tax revenues. Intergovernmental transfers can be used to pursue a variety of public policy objectives and come in many forms.

This unit provides an overview of the role of intergovernmental transfers in a system of intergovernmental fiscal relations. A series of four presentations on the topic provide (i) an introduction to the topic of intergovernmental transfers; (ii) a discussion on alternative forms of intergovernmental transfers; (iii) an overview of the design a sound intergovernmental transfer mechanism; and (iv) further issues in the design of a transfer mechanism.

• The Design and Implementation of Intergovernmental Fiscal Transfers  (Roy Bahl, Jamie Boex and Jorge Martinez-Vazquez - 24 pages)
  Overview Paper: 256 KB  

• An Introduction to Intergovernmental Transfers   (Jamie Boex - 8:34 min)
  Video Presentation: 1.62 MB  
  MP3 Audio Only: 1.46 MB  
  Presentation Slides: 99.2 KB  

• The Allocation of Intergovernmental Transfers   (Roy Bahl - 11:42 min)
  Video Presentation: 2.09 MB  
  MP3 Audio Only: 1.99 MB  
  Presentation Slides: 73.5 KB  

• Designing an Intergovernmental Transfer Mechanism   (Jamie Boex - 13:31 min)
  Video Presentation: 2.49 MB  
  MP3 Audio Only: 2.29 MB  
  Presentation Slides: 132 KB  

• Further Issues in the Designing a Transfer Mechanism   (Jamie Boex - 14:11 min)
  Video Presentation: 2.55 MB  
  MP3 Audio Only: 2.40 MB  
  Presentation Slides: 84.4 KB