commission on fiscal imbalance 合集

322 spending decentralization15 in many countries

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Unformatted text preview: ed since the 2000 reform took 7 Commission on Fiscal Imbalance effect, according to David Collins. In fact, the Commonwealth’s share has risen 5% because the new GST, that replaced certain taxes that states gave up and is paid in full to the states, is considered a federal tax. 3.2.2. Spending Decentralization15 In many countries, responsibilities for spending programs, and even legislative authority in some cases, are highly decentralized or are heading in that direction. In the case of the three oldest federations (United States, Switzerland and Australia), the federated states’ share of total public spending and the distribution of jurisdiction over spending are fairly stable overall, with the possible exception of the United States where the share of the states and local administrations in public spending as a whole has been on an upswing since World War 2. From the standpoint of the jurisdictions and responsibilities of the American states, the few notable changes concern the greater flexibility they have received in the administration of social assistance programs (for which they receive federal funding), within the limits and conditions set by the federal government, and the adoption of a law limiting the capacity of the federal government to impose unfunded mandates on states. However, as Bill Fox and Bruce Wallin point out, these changes are somewhat limited in scope. In Switzerland, the shares have been fairly stable for 30 years for the three categories of government: 31-33% for the Confederation, 39-40% for the cantons and 27-29% for the communes. The distribution of jurisdictions is strongly influenced by the application of the subsidiarity principle and has not fundamentally changed in 30 years. The cantons and communes account for two thirds of public spending and they predominate in the education, health, public order, culture and environmental sectors. However, in the social affairs sector, as a general rule, Bernard Dafflon notes a slight trend towards centralization (federal legislative control rising slightly with a concomitant increase in the execution role of the cantons). Lastly, in Australia, the proportions were also stable during the 1990s, the Commonwealth being responsible for 56-58% of spending and the other governments accounting for 42-44%. David Collins points out that the 2000 reform did not alter the distribution of jurisdictions. In the case of Belgium, the decentralization process that started a number of decades ago and marked among other things by the 1993 federalization continues today. The latest institutional agreements, in particular the so-called “SaintPolycarpe” Agreement in 2001, again increased the jurisdictions of the Regions. The federated entities (Communities and Regions) account for a growing share of overall spending, though federal predominance is still substantial, 16 attributable to a large extent to the fact that social security remains within federal jurisdiction. The largest spending items of the Regions and Communities are, respectively, e...
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This note was uploaded on 03/06/2013 for the course ECON 220 taught by Professor Paulo during the Spring '13 term at University of Liverpool.

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