Fiscal imbalances as differences in net fiscal benefitsedit
A fiscal imbalance emerges when sub-national governments have different abilities to raise funds from their tax bases and to provide services. This creates differences in ‘net fiscal benefits’, which are a combination of levels of taxation and public services. It is these NFBs which are the main cause of horizontal fiscal disparities that in turn generate the need for equalization grants. Prominent among the objectives commonly attributed to intergovernmental fiscal transfers is ‘equalization’ of fiscal capacities or resolution of fiscal imbalances.[1]
Thus, the transfer system can promote efficiency in the public sector and can level the field for intergovernmental competition.[2] The discussion of fiscal imbalance and equalisation was of particular importance in the drafting of the new Iraqi constitution. It was a sticking point for the drafting process—with the oil rich regions seeking to minimise the reallocation of revenue while other regions sought to maximise equalisation payments.
Bird, R. M. (2012). Subnational taxation in large emerging countries: BRIC plus one, International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1201, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
Referencesedit
^Boadway, R. (2000). "Recent Developments in the Economics of Federalism". In Lazar, Harvey (ed.). Canada: The State of the Federation 1999–2000: Toward a New Mission Statement for Canadian Fiscal Federalism. Kingston: Institute of Intergovernmental Relations. pp. 41–78. ISBN978-0-88911-843-0.
^Breton, A. (1998). Competitive Governments: An Economic Theory of Politics and Public Finance. New York: Cambridge University Press. ISBN9780521646284.
April 29, 2024
fiscal, imbalance, mismatch, revenue, powers, expenditure, responsibilities, government, contents, differences, fiscal, benefits, also, further, reading, referencess, differences, fiscal, benefits, edita, fiscal, imbalance, emerges, when, national, governments. Fiscal imbalance is a mismatch in the revenue powers and expenditure responsibilities of a government Contents 1 Fiscal imbalances as differences in net fiscal benefits 2 See also 3 Further reading 4 ReferencesFiscal imbalances as differences in net fiscal benefits editA fiscal imbalance emerges when sub national governments have different abilities to raise funds from their tax bases and to provide services This creates differences in net fiscal benefits which are a combination of levels of taxation and public services It is these NFBs which are the main cause of horizontal fiscal disparities that in turn generate the need for equalization grants Prominent among the objectives commonly attributed to intergovernmental fiscal transfers is equalization of fiscal capacities or resolution of fiscal imbalances 1 Thus the transfer system can promote efficiency in the public sector and can level the field for intergovernmental competition 2 The discussion of fiscal imbalance and equalisation was of particular importance in the drafting of the new Iraqi constitution It was a sticking point for the drafting process with the oil rich regions seeking to minimise the reallocation of revenue while other regions sought to maximise equalisation payments See also editFiscal federalism Equalization payments Cyclical asymmetry Nations Fiscal imbalance in Australia Fiscal imbalance in Canada Fiscal imbalance in NigeriaFurther reading editBird R M 2012 Subnational taxation in large emerging countries BRIC plus one International Center for Public Policy Working Paper Series at AYSPS GSU paper1201 International Center for Public Policy Andrew Young School of Policy Studies Georgia State University References edit Boadway R 2000 Recent Developments in the Economics of Federalism In Lazar Harvey ed Canada The State of the Federation 1999 2000 Toward a New Mission Statement for Canadian Fiscal Federalism Kingston Institute of Intergovernmental Relations pp 41 78 ISBN 978 0 88911 843 0 Breton A 1998 Competitive Governments An Economic Theory of Politics and Public Finance New York Cambridge University Press ISBN 9780521646284 Retrieved from https en wikipedia org w index php title Fiscal imbalance amp oldid 1195159086, wikipedia, wiki, book, books, library,
