Manish Manke

To add to this discussion on fiscal federalism - more broadly how different countries distribute resources, even if they are in a unitary system - here are some examples, starting with China which @nikhilkamathcio referred specifically. Rest in alphabetical order. Pooling, devolution, transfers - standard script around the world! China Eastern coastal provinces generate most national tax revenue under the 1994 tax-sharing system. The central government redistributes these resources through large equalizing transfers to poorer central and western provinces. Australia Western Australia’s massive mining royalty revenues significantly increase its assessed fiscal capacity under the country’s Horizontal Fiscal Equalization framework. As a result, WA's share of the federal GST pool used to be low. Although a statutory GST floor was legislated in 2018, WA still operates as a major net fiscal contributor, cross-subsidizing lower-capacity jurisdictions such as Tasmania and the Northern Territory. Brazil São Paulo and the Southeast contribute a disproportionate share of federal taxes. The States Participation Fund then redistributes resources toward poorer North, Northeast and Midwest states based on certain criteria. Germany Bavaria, Baden-Württemberg and Hesse pay the bulk of the Finanzkraftausgleich (fiscal capacity equalization). Their surplus tax capacity is redistributed mainly to eastern states and Berlin so that living conditions remain broadly comparable across the federation. Indonesia Richer Java-based economies and the national tax base fund the General Allocation Fund equalization grant. Resource provinces receive derivation-based Revenue Sharing Fund, but the gap-filling GAF still moves net resources toward lower-capacity regions. Italy Northern regions especially Lombardy record large positive fiscal residuals. National transfers and partial equalization channel these resources southward, especially focused on health. Japan Tokyo and major metropolitan prefectures generate the lion’s share of national tax receipts while maintaining their own local tax bases. The central government pools a statutory share of national taxes into the Local Allocation Tax to close fiscal gaps in rural and lower-capacity prefectures, guaranteeing a uniform national standard of public services. Switzerland Rich cantons such as Zug, Geneva and Zurich contribute to resource equalization. These payments, alongside federal funds, lift weaker cantons to roughly 86.5% of average fiscal capacity while preserving tax competition. United Kingdom London and the South-East generate fiscal surpluses that are pooled nationally. Through the "Barnett formula", these resources support services in Scotland, Wales and Northern Ireland. The adjustments for poorer English regions are made through another process.

India’s running boom has Nike, Asics sprinting for the next $10 billion economictimes.indiatimes.com…