Strengthening India's Intergovernmental Fiscal Transfers: Learnings from the Asian Experience

A mechanism for allocating performance-based grants to Indian states is proposed based on improvements in governance index. The publication contributes to a deeper understanding of decentralization reforms across Asian countries. It synthesizes learnings from the experiences of Australia, Indonesia, Japan, the People’s Republic of China and the Republic of Korea on the design of intergovernmental fiscal transfer systems and the use of performance-based transfers for promoting subnational governance and outcomes in social sectors such as education and health.

  • Executive Summary
  • Mechanisms for Fiscal Transfers
  • Design of Intergovernmental Fiscal Transfers
  • Incentivizing Subnational Government Performance through Transfers
  • Conclusion

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