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.

Project ID

108084

Project status

Active

End Date

Thursday, August 23, 2018

Duration

18 months

IDRC Officer

Seema Bhatia-Panthaki

Total funding

CA$ 231,405

Countries

India, Pakistan

Program

Think Tank Initiative

Project Leader

Asif Iqbal

Institution

Social Policy and Development Centre

Institution Country

Pakistan

Institution Website

http://www.spdc.org.pk

Project Leader

Pinaki Chakraborty

Institution

National Institute of Public Finance and Policy

Institution Country

India

Institution Website

http://www.nipfp.org.in