OECD Working Paper on the implications of increased defence spending for subnational governments: Effects depend on various features of the intergovernmental fiscal relations system, such as revenue and spending assignments
On Wednesday June 10th, 2026, the report “Implications of increased defence spending for subnational governments” (2026) by L. de Mello and T. Ter-Minassian in the series OECD Working Papers on Fiscal Federalism was released on the website of the OECD. The ongoing increase in defence spending has important and uneven consequences for subnational governments, both through local economic spillovers and public-finance channels. The paper reviews evidence on national and local ...