Fiscal Transfers

Fiscal transfers are payments or resources moved from higher levels of government, such as the national or federal government, to lower levels like states, provinces, or local authorities. These transfers help ensure that regions with fewer resources can provide essential services like healthcare, education, and infrastructure. They aim to promote financial equality across regions, support development, and reduce disparities. Essentially, fiscal transfers redistribute funds to improve overall national cohesion and ensure all areas can meet basic public needs.