Timofeev, AndreyMartinez-Vazquez, Jorge2013-03-212013-03-212010-06https://hdl.handle.net/10986/12842This technical note evaluates the methodology proposed by the Ministry of Finance for the allocation of transfers to subnational governments and suggest a number of alternative options for various grant design elements Overall, the framework laid out in the Budget Code and the implementation approach developed in the draft methodology conform to sound principles in fiscal decentralization and the best international practices. However, a number of elements of the methodology still need to be elaborated and some elements might need to be revised.en-USCC BY 3.0 IGOACCESS TO INFORMATIONACCOUNTINGADJUSTMENT COEFFICIENTADJUSTMENT COEFFICIENTSAFFORDABILITYAGGREGATE EXPENDITURESAGGREGATE REVENUEALLOCATION MECHANISMALLOCATION OF TRANSFERSAPPROPRIATIONSASSIGNMENTS OF EXPENDITURE RESPONSIBILITIESBANK POLICYBASELINE ESTIMATESBENEFICIARIESBENEFICIARYBORROWINGBUDGET ACCOUNTSBUDGET AGGREGATESBUDGET AUTHORITIESBUDGET CIRCULARBUDGET CLASSIFICATIONBUDGET CODEBUDGET DATABUDGET PLANNINGBUDGET POLICYBUDGET PREPARATIONBUDGETINGCAPITAL EXPENDITURESCAPITAL INFRASTRUCTURECASH BALANCESCATEGORIES OF EXPENDITURESCENTRAL GOVERNMENTCITIESCITY TRANSPORTCOEFFICIENT OF VARIATIONCOMMUNITY DEVELOPMENTCONSENSUS BUILDINGCREDIBILITYCREDIT GUARANTEESDATA ANALYSISDATA AVAILABILITYDERIVATION PRINCIPLEDEVELOPING COUNTRIESDIFFERENTIALSDISTRICTDISTRICTSDIVISION OF RESPONSIBILITIESECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIES OF SCALEEDUCATION EXPENDITURESEDUCATION SERVICESELASTICITIESENROLLMENTEQUALIZATIONEXCLUSIONEXPENDITUREEXPENDITURE ASSIGNMENTEXPENDITURE ASSIGNMENTSEXPENDITURE CATEGORIESEXPENDITURE CATEGORYEXPENDITURE FUNCTIONSEXPENDITURE NEEDEXPENDITURE NEEDSEXPENDITURE PROGRAMEXPENDITURE RESPONSIBILITIESEXPENDITURE RESPONSIBILITYEXPENDITURESEXPENDITURES PER CAPITAEXTENSION OF CREDITFAMILIESFINANCESFINANCIAL ACCOUNTABILITYFINANCIAL CRISISFINANCIAL RESOURCESFINANCIAL RESPONSIBILITYFIRE PROTECTIONFISCAL CAPACITIESFISCAL CAPACITYFISCAL DECENTRALIZATIONFISCAL EFFORTFISCAL IMBALANCESFISCAL OUTCOMESFISCAL POLICYFISCAL REFORMFISCAL TRANSFERFULL ACCESSGOVERNMENT EXPENDITURESGOVERNMENT REVENUESGRANT ALLOCATIONGRANT DISTRIBUTIONGROSS DOMESTIC PRODUCTHOUSEHOLDSHOUSINGILLITERACYINEQUALITIESINEQUALITYINTERGOVERNMENTAL FISCAL RELATIONSINTERGOVERNMENTAL FISCAL TRANSFERSINTERGOVERNMENTAL GRANTSINTERGOVERNMENTAL TRANSFERINTERGOVERNMENTAL TRANSFERSISSUANCEJUDICIAL SYSTEMLEGISLATIVE FRAMEWORKLEVEL OF GOVERNMENTLOCAL EXPENDITURELOCAL EXPENDITURESLOCAL FINANCESLOCAL GOVERNMENTLOCAL GOVERNMENT EXPENDITURESLOCAL GOVERNMENTSLOCAL PUBLIC SERVICESLOCAL REVENUELOCAL TAXESMEDIUM-TERM PROJECTIONSMINISTRY OF FINANCEMUNICIPALITIESNATIONAL BANKNATIONAL DEFENSENATIONAL ECONOMYNATIONAL STATISTICSNATIONAL TAXESNEGATIVE INCENTIVESPER CAPITA EXPENDITURESPERSONAL INCOMEPERVERSE INCENTIVESPOLICY CHOICESPOLICY REFORMPOLICY-MAKERSPOOL OF FUNDSPOVERTY RATEPRICE INDEXPROGRAMSPROVISION OF SERVICESPUBLICPUBLIC ACTIVITIESPUBLIC ADMINISTRATIONPUBLIC ENTITIESPUBLIC EXPENDITUREPUBLIC FINANCEPUBLIC FINANCIAL MANAGEMENTPUBLIC GOODSPUBLIC HOUSINGPUBLIC OFFICIALSPUBLIC SECTORPUBLIC SERVANTSPUBLIC WORKSREAL ESTATE TAXREDISTRIBUTIONREFORM EFFORTSREGIONAL GOVERNMENTSRETAIL SALES TAXREVENUE ASSIGNMENTREVENUE BASEREVENUE CAPACITYREVENUE CATEGORYREVENUE COLLECTIONSREVENUE FORECASTREVENUE GAPREVENUE RETENTIONREVENUE SHORTFALLREVENUE SOURCEREVENUE SOURCESREVENUE YIELDROADSSANITATIONSECTORAL EXPENDITURESSECURITIESSERVICE DELIVERYSERVICE DEMANDSERVICE PROVISIONSETTLEMENTSMALL BUSINESSESSOCIAL INFRASTRUCTURESOCIAL POLICYSOCIAL PROTECTIONSOCIAL SECURITYSOCIAL SECURITY FUNDSSOCIAL SERVICESSTRUCTURE OF GOVERNMENTSUBNATIONALSUBNATIONAL DEBTSUBNATIONAL GOVERNMENTSUBNATIONAL GOVERNMENTSSUBSIDIZATIONTAXTAX AUTHORITIESTAX BASETAX BASESTAX CAPACITYTAX CODETAX RATESTAX REGIMETAX REVENUETAX REVENUESTAX SYSTEMTAXABLE CAPACITYTECHNICAL ASSISTANCETOTAL EXPENDITURESTOWNTOWNSTRADINGTRANSPARENCYTREASURYURBANIZATIONUTILITIESVALUATIONVERTICAL BALANCEVERTICAL IMBALANCEVOUCHERSWorld Bank10.1596/12842