commission on fiscal imbalance 合集

For most aided functions the rate of grants has two

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Unformatted text preview: ively to their relative place with regard to per capita NIC (column 2), where the min/max ratio is 2.5 points between Zoug and Appenzell Rh.-Int. In consequence, the equalising effects of equalisation payments are reinforced. 6.2. Federal equalisation programmes Three sets of federal equalisation programmes have been developed since 1959 for the benefit of the Cantons: (1) conditional federal grants-in-aid to the Cantons, (2) revenue-sharing of certain federal tax revenues, and (3) 21 contributions of the Cantons to certain federal social security expenditures. 20 21 Other regional measures, mostly in the form of conditional grants, address either to individual or private firms within delimited regions or to the regions for themselves or for the communes within their jurisdiction. Regions do not necessarily coincide with cantonal frontiers. Usually, the regions group a number of neighbouring communes with some geographic similarities (all the municipalities in a valley, or alongside the same border of a river, for example). Some regions are intercantonal, which creates co-ordination problems when the respective cantonal Constitutions or laws do not contain identical rules. There is no automatic supra-cantonal rules to observe, so that co-operative federalism is negotiated from case to case. Intercantonal equalisation also exists, principally as contributions for regional spillovers. One example is the contributions of the Cantons without universities to the cantons with universities, in the form of a fix annual sum per student. At the local level, many systems of revenue sharing and grants-in-aid function between the Cantons (not all) and their communes. A number of Cantons have also developed horizontal equalisation mechanisms in which the fiscally strong communes provide direct support for the fiscally weak municipalities. 83 Commission on Fiscal Imbalance 6.2.1. Conditional ( specific) federal grants-in-aid Many items of cantonal expenditures benefit from federal specific grants. For most aided functions, the rate of grants has two components: ♦ a basic rate, Sjmin in the following formula, which may be said to represent the federal interest in minimum standard requirements for cantonal public services and which varies according to incentive or some other technical criteria (economies of scale, spillovers, congestion costs); ♦ an equalisation supplement, the second part [...] of the formula, inversely related to the index of financial capacity of the recipient canton. This type of fiscal equalisation is mainly vertical, from federal to lower levels of government. It is regulated by many special law. The general grant formula for most granted functions is: Sij = Sjmin + [(120-Ei )/60 × (Sjmax - Sjmin )] where S j i E max min Ei Ei = = = = = = = = rate of grant aided function Canton i = 1...26 index of financial capacity maximal rate of grant minimal rate of grant 120 for Ei ≥120 60 for 30 ≤ Ei ≤ 60 Example: Consider a the basic rate of grant of 30 % for a function "j" and a maximum rate of 45 %. This means tha...
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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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