commission on fiscal imbalance 合集

Government finance statistics yearbook 1998 164 c 0

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Unformatted text preview: 77% 13% 87% 83% 17% 35% 65% 81% 19% 85% 15% 66% 34% 9% Poland 100% 0% 43% 57% 88% 12% 18% 82% 96% 4% 45% 55% 95% Slovak Republic 100% 0% 100% 0% 100% 0% 40% 60% 95% 5% 72% 28% 99% 1% 96% 99% 1% 76% 24% 99% 1% 22% 78% 94% 6% 55% 45% 99% 1% 77% 23% 81% 19% 100% 0% 33% 67% 100% 0% 59% 41% 48% 52% 35% 65% 80% 20% 91% Slovenia United Kingdom 5% 88% 12% 62% 38% 4% 73% 27% 9% 78% 22% TABLE 4B Defense C S Education L C S Health L C S Housing L C S Police L C Australia 100% 0% 0% 28% 72% 0% 52% 47% Bolivia 100% 0% 0% 57% 37% 6% 38% 47% 15% 23% 31% 46% 100% Switzerland 1% 23% 44% 33% 13% 83% 90% 5% 5% 10% 55% 36% 57% 25% 19% 14% 23% 63% United States 100% 0% 0% Russian Fed. 100% 0% 0% 14% NA 86% 15% NA 85% Indonesia 100% 0% 0% 93% NA NA 5% 43% 52% 57% 32% 11% 72% 7% 91% S 7% 9% 98% 0% Recreation L S Welfare L C S Subsidies L C S Other L C 3% 20% 46% 34% 90% 8% 1% 58% 33% 0% 24% 14% 62% 93% 6% 2% 30% 39% 30% 78% 7% 67% 26% 13% 31% 56% 78% 14% 9% 20% 18% 28% 55% 24% 11% 65% 69% 22% S 9% 46% 46% L 8% 5% 17% 8% 33% 44% 23% 39% 28% 33% 8% 64% 26% 9% 69% 13% 19% NA 93% 73% NA 27% 15% NA 85% 90% NA 10% 89% NA 11% 64% NA 36% NA NA NA NA NA 86% 100% NA 2% 99% 1% 100% C= Central Government, S= State or Provincial Government, L= Local Government Source: International Monetary Fund, 1998. Government Finance Statistics Yearbook 1998. 164 C 0% 100% 0% 14% 0% Commission on Fiscal Imbalance 5.2. Revenues The essence of decentralization is that subnational governments have the authority and responsibility to own-finance local services at the margin. Complete fiscal autonomy over revenues requires that in principle local governments can change tax rates and set tax bases. Box 3 illustrates varying levels of local revenue autonomy in different tax designs. The general principles of revenue assignment to different levels of government are listed in fiscal federalism and local government finance literature as (Oates, 1972; Bird, 2000): 1. The tax base assigned to subnational governments should be immobile in order to allow local authorities some freedom to vary rates without the base vanishing. Inter-jurisdictional mobility of tax base makes taxation of mobile factors difficult to subnational governments. 2. Redistributive taxes should be assigned to the central government. Taxes imposed on mobile factors for redistribution purposes might result in inefficient jurisdictional allocation of the factors of production. Uniform redistributive taxes minimize locational distortions of economic activities. 3. Services provided by subnational governments should to the extent possible be financed through user charges and other local fees and taxes that are related to benefits. Efficient allocation of resources requires subnational governments recover their expenses from the beneficiaries of their services. Examples of benefit related revenues include taxes levied on motor vehicles and fuels and construction fees. 4. Taxes that are subject to important economies of scale in collection efforts should be centralized. 5. Taxes subject to cyclical fluctuations need to be protected by a system of counter-cyclical rate adjustments in order to avoid subnational governments exploitation of fiscal power. 6. Taxes levied on tax bases that are unevenly distributed should be centralized....
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