The Feasibility Study on Financing Equitable Service Delivery for All Citizens develops a set of options and specific policy recommendations for the development of an intergovernmental transfer system in the country. This study outlines a contextualized methodology for assessing the “relative fiscal imbalance” for each municipality as well as transparent and unbiased formulas for apportioning the equalization funds among local governments, which will provide more resources to local governments with lower tax capacity and greater expenditure needs, and yet create incentives for revenue mobilization by local governments.