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On the Implementation of Transfers to Subnational Governments

Author

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  • Mr. Bob Searle
  • Mr. Ehtisham Ahmad

Abstract

This paper examines a typology of grants that are used across the world, and places these in the context of the overall constitutional and legal framework for a country. It looks at the options for grants, given the need to maintain overall macroeconomic stability, efficiency in the use of scarce resources as well as reduced horizontal disparities. The role of central objectives in a decentralized framework is also assessed. The paper argues for a comprehensive framework for grants, as well as a proper institutional framework to manage grants systems.

Suggested Citation

  • Mr. Bob Searle & Mr. Ehtisham Ahmad, 2005. "On the Implementation of Transfers to Subnational Governments," IMF Working Papers 2005/130, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2005/130
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=18283
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    References listed on IDEAS

    as
    1. Bob Searle, 2004. "Revenue Sharing, Natural Resources and Fiscal Equalization," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0416, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
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    Cited by:

    1. Salvador Barrios & Diego Martínez-López, 2017. "Fiscal equalization schemes and subcentral government borrowing," Chapters, in: Naoyuki Yoshino & Peter J. Morgan (ed.), Central and Local Government Relations in Asia, chapter 4, pages 130-160, Edward Elgar Publishing.
    2. Alessandro Petretto, 2013. "Need Equalization Transfers and Productive Efficiency of Local Governments," Rivista italiana degli economisti, Società editrice il Mulino, issue 1, pages 25-46.

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