With rigorous economic research and practical policy solutions, we focus on the issues and institutions that are critical to global development. Explore our core themes and topics to learn more about our work.
In timely and incisive analysis, our experts parse the latest development news and devise practical solutions to new and emerging challenges. Our events convene the top thinkers and doers in global development.
Did forest-based centre-state transfers work? (LiveMint)
November 4, 2019
From the article:
"As the 15th Finance Commission (FC) finalizes its recommendations for how the centre’s tax revenues are shared with states, new research suggests that the sharing formula should retain forest cover as a criterion. Jonah Busch and others in a paper published by the Center for Global Development analyse state budgets to examine whether ecological fiscal transfers (EFTs) has impacted state forestry expenditures. EFTs are meant to reward states that protected their forests. Within the total centre-state disbursement, 7.5% was set aside to be divided among states based on the area of forests within states. Consequently, states that preserved forests stood to gain in terms of greater disbursement from the centre. To measure the effect of this, the authors compared state expenditure on forests between 2012-13 and 2014-15, before the reform was implemented, with spending in the three years (2015-16 to 2017-18) after the reform..."