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Intergovernmental Fiscal Transfers in Developing Countries

Case Studies from the Commonwealth

image of Intergovernmental Fiscal Transfers in Developing Countries

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Lessons from OECD Countries – Case Study on IGTs in Australia

Australia operates under a federal system with three different levels of government. These include the Commonwealth Government, the state and territory governments and local councils (Australian Government 2011a). There are six states in Australia: New South Wales (NSW), Queensland (QLD), South Australia (SA), Tasmania (TAS), Victoria (VIC) and Western Australia (WA). In addition to the states, there are two mainland territories: the Australian Capital Territory (ACT) and the Northern Territory (NT; Australian Government 2012). The various levels of government are each run by a democratically elected council or parliament. The main transfer of funds is from the federal level to the states, territories and local governments. There is also some provision of funds from the states to local councils (Parliamentary Education Office 2012).

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