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commission on fiscal imbalance 合集

Thus in a given region j where population figures and

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Unformatted text preview: . federal transfers and own-source non-tax revenues. In the Walloon Region, a transfer must also be added from the French Community. Cattoir and Verdonck (1999, our translation) have noted, with respect to federal transfers, that they are, first and foremost, a “right of withdrawal on the federal budget intended to finance programs aimed at putting the unemployed to work. An amount equivalent to unemployment compensation is granted to each Region concerned for each full-time equivalent job for which the Region assumes responsibility.” There is also a special form of aid, called mortmain, granted to the City of Brussels to offset the costs that it assumes as a federal and international capital, especially since it does not collect the property tax on buildings used for this purpose.21 Furthermore, the Walloon Region receives aid from the French Community in order to assume the fields of Community jurisdiction transferred to it in 1993, especially in the social and health sector, which engender in the Walloon Region expenditure in excess of the aid received from the French Community (17 billion BEF or 0.42 billion € in spending in 1998 as against 13.8 billion BEF or 0.34 billion € in aid). 4.1.5. Summary and remark Cattoir and Verdonck (1999) have proposed a formalization that clearly summarizes the system described in this section. I have modified it somewhat in order to highlight the criterion for determining whether a Region is eligible to the national solidarity measure or not. The revenues, own-source revenues, j 0 R Rj, of a Region comprise the Region’s tax revenues and non-tax , its share of the personal income tax revenues transferred, noted X, and, as the case may IPP j and IPP tot denote j tot the personal income tax revenues of the Region and Belgium as a whole, respectively, and POP and POP the be, aid in conjunction with the national solidarity measure. Thus, in a given Region j , where population figures and p the inflation rate, in the year t subsequent to the implementation of the transitional phase but included in the permanent phase: R j = R0j + X IPP j IPP j POP j t + 468(1 + p ) 100 Max 1 − IPP tot IPP tot POP tot ,0 POP j An event that subsequently marginally increases the personal income tax revenues of the Region concerned, e.g. in the wake of an employment-support initiative undertaken by the Region, will affect the Region’s revenues depending on the tax revenues of the other Regions and the total population, expressed as follows: [ ∂R j IPP tot − IPP j t = X − 468(1 + p ) 100 POP tot ∂IPP j (IPP tot )2 or simply ∂R j IPP tot − IPP j =X ∂IPP j (IPP tot )2 21 On the cooperation mechanisms between the federal government and the Brussels-Capital Region, see also the analysis of the cooperation agreement proposed by Poirier (2002). 185 Commission on Fiscal Imbalance depending on whether or not the national solidarity measure comes into play. It is readily apparent that a Region benefiting from the national solidarity measure is less well paid than another in respect of a budgetary effort that generates an increase in local tax revenues. Moreover, changes in the pers...
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