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intergovernmental transfers - Coggle Diagram
intergovernmental transfers
Types
Conditional ( specific or earmarked)
matching
lump sum (block grants)
Unconditional ( General Purpose
Rationale
vertical imbalance( fiscal gap )/ unconditional lumpsum or block
horizontal fiscal imbalance/ differences in revenue btw governments as same level
externalities
Political Rationales
Design Principles
Efficiency
Fairness ( equity)
Clear objectives
Accountability
Transparency
Stability/ Predictability
Revenue Adequacy
Autonomy
Responsiveness
Simplicity
Problems
Distort local decision making
Inefficient local revenue decisions