Fiscal equalisation in Brazil, Canada and Australia: The case of states or provinces

Produced by: 
International Policy Center for Inclusive Growth
Available from: 
June 2022
Paper author(s): 
Constantino Cronemberger Mendes
Topic: 
Fiscal Policy - Public and Welfare Economics
Year: 
2022

As federated countries, Brazil, Canada and Australia follow distinct fiscal equalisation models, considering the interrelationships between federal and state or provincial governments, to provide adequate public services. An ideal equalisation model should feature a systemic view of fiscal capacities and social needs, as in Canada and Australia. This is particularly important for Brazil, considering the significant heterogeneities and inequalities in the socioeconomic structures of the country’s 26 states.

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