commission on fiscal imbalance 合集

Government finance statistics year book 1998 country

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Unformatted text preview: India, Indonesia, Ireland, Israel, Luxembourg, Mauritius, Mexico, Netherlands, Norway, Romania, South Africa, Spain, Sweden, Thailand, and United States. Revenue figures are for all revenues other than intergovernmental grants. 145 Commission on Fiscal Imbalance FIGURE 1 Decentralization Trends 0.40 0.35 Pe rc 0.30 en ta ge Sh 0.25 ar e of Su 0.20 Expenditur Revenu bn ati on 0.15 al Go ve rn 0.10 m en ts 0.05 0.00 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Source: International Monetary Fund. Government Finance Statistics Year Book 1998, Country Tables. Although, the share of subnational governments in total government spending or revenue gives us an idea about the relative importance of subnational governments in total public sector and its change over time, neither of them is a perfect measure of fiscal decentralization. 146 Commission on Fiscal Imbalance FIGURE 2 F ig u re -2 : S u b n a t io n a l S h a r e o f E x p e n d it u r e s b y C o u n try (1 9 9 8 ) P e ru In d o n e s i a A rg e n tin a In d i a P anam a C o s t a R ic a N ic a ra g u a S ta te o r P ro v in c ia l T rin id a d a n d T o b a g o Local M a u ritiu s K en ya B o ts w a n a P o rtu g a l T h a ila n d R o m a n ia B e lg iu m C ro a tia Is r a e l L u xe m b o u rg F ra n c e A l b a n ia B u lg a ria C z e c h R e p u b l ic L i t h u a n ia P o la n d H u n g a ry L a tvia N e th e rla n d s It a l y U n ite d K in g d o m Ic e l a n d N o rw a y S w eden M o n g o l ia B e la ru s F in la n d R u s s ia n F e d e r a t i o n D e n m a rk N e t h e r l a n d s A n t il l e s M a la y s ia A u s tria B o liv ia S p a in G e rm a n y B ra z il U n ite d S ta te s A u s t r a li a S w itz e rla n d S o u t h A f r ic a 0% 10% 20% 30% 40% S h a re o f T o ta l 50% 60% 70% Source: International Monetary Fund. Government Finance Statistics Year Book 1998, Country Tables. Fiscal decentralization is about empowering people to participate in and influence the decisions made within their close community (Inter-American development Bank, 1997). In a fiscally decentralized system, where citizens’ participation in decision-making is encouraged, locally elected governments have the power to pursue the agenda mandated by voters. Thus, a measure of fiscal decentralization should reflect the key characteristics of a fiscally decentralized system, such as the existence of elected local council, locally approved budget, local governments’ borrowing power, capacity of local governments to collect taxes (Bahl, 1999). In most countries, intergovernmental relations system does not have these characteristics. Comparing the degree of fiscal decentralization across countries is a complex and multifaceted task that requires identification of subnational autonomy and discretion on expenditure and revenue affairs. Although there has been an 147 Commission on Fiscal Imbalance effort by both multinational (OECD, 1999) and bilateral (Bird and Banta, 1999) organizations to develop a methodology 4 for a comparable statistics on fiscal decentralization across countries, there is yet no standardized data...
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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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