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Brazilian federalism was important in the political game of combating the pandemic for three reasons. First, Brazil's public health system depends heavily on intergovernmental relations between Union, states, and municipalities because there is a policy portfolio based on federative cooperation. Second, the subnational governments' autonomy to act against COVID-19 was constantly questioned by the Federal Government – the conflict between the President and governors was a key piece in all health policy. Finally, states and local governments were primarily responsible for policies to fight against pandemic, but the absence and/or wrong measures taken by the Federal Government (such as the delay in purchasing vaccines) generated intergovernmental incoordination, increased territorial inequality, and reduced the effectiveness of subnational public policies, especially those linked to social isolation. In this context, Brazilian federalism played a dual role in the pandemic. On the one hand, the federative structure partially succeeded in averting an even worse scenario, mitigating the impact of mistaken presidential decisions. The role of subnational governments, especially of the states, was critical as a counterweight to federal decisions. On the other hand, the President actively acted against governors and mayors and, above all, sought to weaken intergovernmental articulations within the Unified Health System (SUS), the federative model designed three decades ago. One could say that the federative actors, such as the Supreme Court (Supremo Tribunal Federal – STF) and subnational governments, were the main obstacles for the Bolsonarist antiscientific agenda. The success of this reaction to President Bolsonaro's negationist populism was partial, but the results of the fight against COVID-19 would have been much worse without these federalist barriers.

Provision of ecological goods and services at the local level is often related to benefits at higher governmental levels. On the one hand, sustainable watershed management and biodiversity conservation are strongly connected to local land-use decisions. On the other hand, related conservation activities and protected areas are frequently associated with regional, national or even global public goods. Therefore, spatial externalities or spillover effects exist that – if not adequately compensated – lead to an under-provision of the public goods and services concerned. This chapter investigates fiscal transfers as an innovative instrument for compensating local jurisdictions for the ecological goods and services they provide across local boundaries. From a public finance perspective, fiscal transfers are a suitable instrument for internalising spatial externalities. A case study is presented that investigates the present and potential use of fiscal transfers for ecological public functions in the German federal systems. Analysis of the German system of fiscal equalisation at the local level shows that, so far, mostly end-of-the-pipe activities are currently considered with resource protection and nature conservation being widely underrepresented.

The paper critically examines the program on Education for All (EFA) in India, namely Sarva Shiksha Abhiyan (SSA) in a financing and development framework. In doing so, the paper identifies a number of policy and implementation gaps in the program. A fine-tuning of the existing matching shares by discriminating the matching shares in terms of need for, ability to provide matching shares and to strengthen the absorptive capacity could go a long way in attaining the horizontal equity in terms of every child completing elementary schooling in India. This would also ensure the other desirable principles of intergovernmental transfers such as predictability, transparency, and incentive mechanism besides improving utilization.

Further, it clearly emerges that only after ensuring the basic minimum levels in terms of physical and human infrastructure, and ensuring equal access to all the child population of age group of 6–14, quality is given priority. Thus, the challenge is both improving the qualitative and quantitative targets of UEE with enhanced resource allocation to education. Hence, Center is to ensure release of funding for SSA through special efforts as the program requires enormous funding and serious commitment of both central and state governments.

On the developmental aspects, the scheme not only widens social inequity but also perpetuates the declining quality of public provision by encouraging alternate schools and para teachers, besides the financing norms. These low-cost options will result in serious ramifications on equity, quality, balance, and sustainability of the basic education structure.

This chapter has four parts. The first section addresses the legal analysis of the Argentine local governments' autonomous regime, considering its provinces and municipalities, and the second section analyzes the portfolio of policies – nationals, provincials, locals – to attend the emergency of COVID-19, which show that the Federal State was dedicated to the overall strategy: sustaining the income of citizens, businesses, and subnational governments; and the purchase and distribution of health equipment and supplies, while the attention of COVID-19 cases fell to the provinces and municipalities. The third section analyzes the coordination mechanisms during the pandemic mainly based more on presidential leadership with the support of governors and mayors than on institutional mechanisms. Finally, the role of the political agency especially as for the main interjurisdictional conflicts that took place in 2020 and 2021 once the authorities dimensioned the pandemic scope as well as the Kirchnerism/anti-Kirchnerism cleavage that characterizes Argentine politics since 2008.

Australia notably was one of the few developed nations to avoid a technical recession subsequent to the Global Financial Crisis (GFC). However, the fact that the nation escaped a technical recession doesn’t mean that citizens and local governments were not subject to some of the measures associated with post-GFC austerity. In particular, intergovernmental grants – an important source of revenue for Australian local governments – were frozen by the federal government seeking to mitigate large deficits over the forward estimates. This chapter compares and contrasts the budgetary outcomes for the local governments of Australia’s two most populous states – New South Wales and Victoria. We find that the disparate regulatory controls in the two municipal jurisdictions were strongly associated with the budgetary outcomes of the individual municipalities: In particular, we present evidence which suggests that taxation limitations and lax investment guidelines in New South Wales can be associated with relatively inferior budgetary positions and higher budgetary volatility. By way of contrast, Victorian councils had the flexibility to vary rates of taxation to the changing conditions and largely avoided investment losses associated with the financial failure of Lehman Brothers. In New South Wales the regulatory response to deteriorating municipal budgets (subsequent to the GFC) has been to execute a radical programme of forced amalgamations. Somewhat ironically, the Victorian state government has recently imposed taxation limitations on its municipalities. In summary, this chapter demonstrates the saliency of regulatory constraints on municipal resilience, in the context of post-GFC economic challenges.

Based on government data from 1993 to 2008, this chapter aims to compute and analyze the trends of inequity in interprovincial and regional per-student spending in China's compulsory education, and to ascertain the potential impact of changes in education financing policies. Appropriate inequity measures (Gini and Theil index and Gini decomposition, among others) are employed to provide a systematic picture of the trends. Main findings include: (1) all inequity measures show large and overall increased disparities among provinces and among regions, between 1993 and 2008. (2) However, a slight drop of spending inequity is observed at the primary education level around 2002 and a larger reduction in 2005 and on. There are more turning points in the trend of lower-secondary per-student spending among provinces. These patterns are consistent across different inequity measures and spending indicators (per-student total spending, per-student recurrent spending, and per-student nonpersonnel spending). (3) The trend toward more balanced resource allocation around 2002 and 2005 could be the impact from the Reform of Tax and Administrative Charges and the New Mechanism for Financing Rural Compulsory Education. An increased share of budgetary expenditure in determining total spending suggests that equalizing financing policies have the potential to induce a significant reduction in spending inequity. These findings may help policy makers to better understand and alter the extent of spending inequity in compulsory education. This is an original empirical study that systematically derives the spending inequity trends over a long period in China's compulsory education.