Shah, Anwar2014-08-292014-08-292012-03https://hdl.handle.net/10986/19875This paper reviews the conceptual challenges as well as lessons from worldwide experiences in implementing public services and expenditure need compensation in fiscal equalization transfers with a view to developing guidance for practitioners. The paper concludes that while in theory a strong case for a comprehensive fiscal equalization can be made, in practice fiscal need equalization as part of a comprehensive equalization program introduces significant complexity. This works against the simplicity, transparency and general acceptability of the program. This does not imply that fiscal need equalization should be abandoned in the interest of simplicity and transparency. Instead simplicity, transparency and local autonomy are preserved by having fiscal need equalization through public service oriented (specific purpose block transfers) output based fiscal transfers that impose no spending requirements for any functions or objects of expenditures. Such transfers contrast with traditional earmarked transfers, which impose conditions on spending for specific purposes or objects of expenditure and subsequent verification/certification of such expenditures. Such output-based block transfers would further enhance citizen based accountability for results and thereby offer potential for enhancing public confidence and trust in government operations.en-USCC BY 3.0 IGOACCESS TO EDUCATIONACCOUNTABILITYAD HOC GRANTSADJUSTMENT COEFFICIENTANALYTICAL APPROACHASYMMETRIC INFORMATIONAUDITSAUTONOMYBLOCK GRANTSBUDGET ALLOCATIONSBUDGETARY ALLOCATIONSBUDGETARY AUTONOMYCAPITAL GRANTSCAPITALIZATIONCENTRAL GOVERNMENTCHARTER SCHOOLCHARTER SCHOOLSCITIESCOEFFICIENTSCOMPARATIVE PERSPECTIVESDAYCAREDECENTRALIZATIONDEMOGRAPHIC COMPOSITIONDEMOGRAPHIC FACTORSDIFFERENTIALSDISTRICTDISTRICT GOVERNMENTSDISTRICTSECONOMIC EFFICIENCYEDUCATION FINANCEELECTRICITYELEMENTARY SCHOOLEMERGING MARKET ECONOMIESEMPLOYMENTEMPLOYMENT STATUSEMPOWERMENTENROLLMENTENROLLMENTSEQUAL ACCESSEQUAL AMOUNTSEQUAL TREATMENTEQUALIZATIONEQUITY GROUNDSEQUITY OBJECTIVESETHNIC GROUPSEXPENDITUREEXPENDITURE CATEGORIESEXPENDITURE CATEGORYEXPENDITURE CLASSIFICATIONEXPENDITURE NEEDEXPENDITURE NEEDSEXPENDITURE PER CAPITAEXPENDITURE RESPONSIBILITIESEXPENDITURESFAMILIESFEDERAL CONSTITUTIONFEDERAL COUNTRIESFEDERAL FINANCINGFEDERAL OVERSIGHTFEDERAL PROGRAMFEDERAL REVENUEFEDERAL REVENUE SHARINGFEDERAL TRANSFERSFEDERAL TRANSFERS TO PROVINCESFINANCESFINANCIAL REPORTINGFISCAL DECENTRALIZATIONFISCAL FEDERALISMFISCAL MANAGEMENTFISCAL TRANSFERSFIXED COSTSFORMULA GRANTSGARBAGE COLLECTIONGENDERGRANT ALLOCATIONGRANT DESIGNGRANT PROGRAMSHEALTH SERVICESHOUSINGILLITERACYINFLATIONINSURANCEINTEREST COSTSINTERGOVERNMENTAL FINANCEINTERGOVERNMENTAL FISCAL RELATIONSINTERGOVERNMENTAL FISCAL TRANSFERSINTERGOVERNMENTAL RELATIONSINTERNATIONAL BANKLACK OF ACCESSLARGE CITIESLAWSLEGISLATIONLEVEL OF GOVERNMENTLEVEL PLAYING FIELDLOCAL AUTONOMYLOCAL EXPENDITURELOCAL EXPENDITURESLOCAL FISCAL CAPACITYLOCAL GOVERNMENTLOCAL GOVERNMENT AUTONOMYLOCAL GOVERNMENT EXPENDITURELOCAL GOVERNMENT FINANCELOCAL GOVERNMENTSLOCAL PUBLIC FINANCEMANDATESMATCHING GRANTSMIGRATIONMINISTRY OF FINANCEMUNICIPALMUNICIPAL EXPENDITUREMUNICIPAL EXPENDITURESMUNICIPAL GOVERNMENTMUNICIPAL GOVERNMENTSMUNICIPALITIESMUNICIPALITYNATIONAL BUDGETNATIONAL GOVERNMENTSPENALTIESPOLICY CHOICESPOLICY DECISIONSPRIVATE SECTORPROPERTY TAXPROVINCEPROVINCESPROVINCIAL SPENDINGPROVISIONSPUBLICPUBLIC DOMAINPUBLIC ECONOMICSPUBLIC EDUCATIONPUBLIC EMPLOYEESPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC GOODSPUBLIC POLICIESPUBLIC POLICYPUBLIC SCHOOLPUBLIC SCHOOLSPUBLIC SECTORPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SERVICE PROVISIONPUBLIC SERVICESPUBLIC SERVICES IN RURAL AREASPUBLIC SPENDINGPUBLIC TRANSITPUBLIC USERECEIPTREFUGEESRESOURCE ALLOCATIONRETIREMENTREVENUE SHARINGREVENUE SOURCESROADSSAVINGSSCHOOL FINANCESINGLE MOTHERSSINGLE PARENTSINGLE PARENTSSOCIAL SERVICESSOCIAL WELFARESPECIAL FUNDSTATE ECONOMIESSTATE EXPENDITURESSTATISTICAL ANALYSISSTREETSSUB-NATIONALSUBNATIONALSUBNATIONAL EXPENDITURESSUBSIDIARITY PRINCIPLETAXTAX BASETAX BURDENTAX BURDENSTAX CAPACITYTAX EFFORTTAX EXPENDITURESTAX RATETAX RATESTAXATIONTAXPAYERSTELECOMMUNICATIONSTOTAL EXPENDITURESTRANSACTIONS COSTSTRANSPARENCYTRANSPORTTREASURYTUITIONUNEMPLOYMENTUNEMPLOYMENT RATEUNIONUNIONSUNIVERSAL ACCESSURBAN AREASURBAN PUBLIC SERVICESURBANIZATIONVOUCHERSWAGE DIFFERENTIALSWAGESWOMAN10.1596/1813-9450-6006