Intergovernmental Fiscal Transfers in Developing Countries

Despite growing fiscal devolution, efficient and effective intergovernmental transfers – the transfer of money from central to lower levels of government – remain a vital sub-national government financing in developing countries.This research study examines different approaches to intergovernmental transfers (ICTs) in developing countries in the Commonwealth, and assesses their relative strengths and weaknesses. It includes detailed case studies of India and Kenya, lessons learned from IGT systems in Australia and the United Kingdom.