A Study of Intergovernmental Fiscal Transfers in India and Pakistan (TTI)
In both India and Pakistan, recent policy changes in the fiscal transfer system (the system that transfers financial resources from one level of government to another) have altered the relationship between the national level and the provincial or state level. This study will analyze the impact of these changes. The study will explore the systematic differences in intergovernmental fiscal transfer systems in the two countries and test a series of hypotheses to assess the impact of such changes on fiscal behavior at the sub-national level. The study will also investigate the impact on effective and equitable delivery of public services at the provincial and state levels. Finally, using disaggregated household level data, the study will test a series of hypotheses on the impact of changes in intergovernmental fiscal transfers on gender equity at the state or the provincial level. The objective is to offer policy recommendations to government to make the financial transfer systems in each country more effective and equitable. This study is funded through the Think Tank Initiative (TTI), a multi-funder program dedicated to strengthening independent policy research institutions, or think tanks, in developing countries. The program aims to enhance their ability to provide sound research that informs and influences policy. This second TTI phase (2014-2019) will fund 43 institutions, helping them consolidate their role as credible development actors in their countries, and, in some cases, regionally and internationally.