Fiscal relations remain central to balancing unity and diversity in federations, but the next 25 years will bring new pressures. Climate change, digitalization, demands for inclusion, and state fragility are reshaping fiscal federalism.
Climate adaptation requires innovative fiscal tools while managing political trade-offs and competing priorities. Digitalization challenges traditional tax bases and risks widening inequalities if revenue-sharing and investment rules lag.
Inclusion requires operational instruments like gender-responsive budgeting and targeted transfers to address service gaps. In fragile contexts, fiscal systems must sustain legitimacy and manage conflict.
Federations must design adaptive, politically viable fiscal systems to remain cohesive and fair.