Unformatted text preview: State or Territory.
— By 1 March of each subsequent year of the transition period, advice on the most recent estimates of the
transitional assistance to be provided to each State and Territory in both the current financial year and the next
financial year, and the installment amounts which the Commonwealth should provide to each State and
Territory on the first Tuesday of the following April and July.
— By 1 June of each year of the transition period, advice on the Guaranteed Minimum Amount for each State and
Territory in the current financial year. Frequency and Amounts of Payments and Repayments
5) 6) 7) 8) In each year of the transitional period after 2000-01, the Commonwealth will provide an installment of the guarantee
payment to a State or Territory on the first Tuesday (or the first business day thereafter) of January, April, July and October.
The installment amounts will reflect the advice to be provided to the Ministerial Council by the Heads of Treasuries under
Adjustments to the total amount of additional assistance to a State or Territory in light of actual GST collections and the
Treasurer’s determination of the Guaranteed Minimum Amount will be made in conjunction with the payments of GST
revenue grants after 10 June in each year.
A State or Territory will repay a loan which it receives from the Commonwealth in 2000-01 in quarterly installments in
2001-02. These installments will be paid to the Commonwealth on the same day on which a State or Territory receives an
amount of GST revenue grants in the months of July, October, January and April.
The methodology for calculating the amounts of particular components of the Guaranteed Minimum Amount for a State or
Territory has been agreed by the Heads of Treasuries and is set out in the document titled Methodology for Estimation of
Components of the Guaranteed Minimum Amount. 143 Commission on Fiscal Imbalance CONCEPT OF FISCAL DECENTRALISATION
AND WORLDWIDE OVERVIEW
By Robert D. Ebel and Serdar Yilmaz 1. INTRODUCTION In the last two decades there has been a worldwide interest in decentralization of government in all parts of the world.
The pursuit of decentralization is widespread, as both developed and developing countries attempt to challenge central
governments' monopoly of decision-making power. In the western world, decentralization is an effective tool for
reorganization of the government in order to provide public services cost effectively in the "post-welfare state" era
(Bennett, 1990; Wildasin, 1997). Developing countries are turning to decentralization to escape from the traps of
ineffective and inefficient governance, macroeconomic instability, and inadequate economic growth (Bird and
Vaillancourt, 1999). Throughout post-communist Central and Eastern Europe, decentralization of the state is the direct
result of the transition from sot system to market economy and democracy (Bird, Ebel, and Wallich, 1995). In Latin
America, the origin of decentralization is the political pressure...
View Full Document