Intergovernmental Relations and Fiscal Discipline: Between Common Tax Resources and Soft Budget Constraints
Title | Intergovernmental Relations and Fiscal Discipline: Between Common Tax Resources and Soft Budget Constraints PDF eBook |
Author | Guiseppe Pisauro |
Publisher | INTERNATIONAL MONETARY FUND |
Total Pages | 30 |
Release | 2001-05-01 |
Genre | |
ISBN | 9781451848687 |
Fiscal decentralization is likely to entail a bias in the budget process toward higher public expenses and deficits. The paper reviews lessons drawn from the theoretical literature and international experience on the design of intergovernmental relations. The institutional setup should address the dual problem of "common tax resources" and "soft" budget constraints, where policies devised to correct one problem may exacerbate the other. An approach based on full tax autonomy of lower-tier governments and reliance on market discipline, not supplemented by self-imposed constitutional limits, is not advisable. More effective seems to be a cooperative approach with some preeminence granted to the central government.
Intergovernmental Relations and Fiscal Discipline
Title | Intergovernmental Relations and Fiscal Discipline PDF eBook |
Author | Giuseppe Pisauro |
Publisher | |
Total Pages | 31 |
Release | 2006 |
Genre | |
ISBN |
Fiscal decentralization is likely to entail a bias in the budget process toward higher public expenses and deficits. The paper reviews lessons drawn from the theoretical literature and international experience on the design of intergovernmental relations. The institutional setup should address the dual problem of common tax resources and soft budget constraints, where policies devised to correct one problem may exacerbate the other. An approach based on full tax autonomy of lower-tier governments and reliance on market discipline, not supplemented by self-imposed constitutional limits, is not advisable. More effective seems to be a cooperative approach with some preeminence granted to the central government.
Intergovernmental Fiscal Relations and the Soft Budget Constraint Problem
Title | Intergovernmental Fiscal Relations and the Soft Budget Constraint Problem PDF eBook |
Author | |
Publisher | |
Total Pages | 30 |
Release | 2005 |
Genre | Budget |
ISBN |
The soft budget constraint problem in intergovernmental fiscal relations arises when subnational governments' spending and borrowing decisions are influenced by the expectation of receiving additional resources from the central government. The paper describes the key determinants of soft budget constraints and surveys the theoretical and empirical literature on the topic. An ssessment of the soft budget constraint problem is provided for selected, developed, developing, and transition economies as reported in the case study literature. The paper concludes with a discussion of the methods that may be employed to mitigate the soft budget constraint problem.
On the Determinants of Fiscal Non-Compliance
Title | On the Determinants of Fiscal Non-Compliance PDF eBook |
Author | Victor Duarte Lledo |
Publisher | International Monetary Fund |
Total Pages | 33 |
Release | 2017-01-20 |
Genre | Business & Economics |
ISBN | 1475569920 |
This paper proposes an empirical framework that distinguishes voluntary from involuntary compliance with fiscal deficit targets on the basis of economic, institutional, and political factors. The framework is applied to Spain’s Autonomous Communities (regions) over the period 2002-2015. Fiscal noncompliance among Spain’s regions has shown to be persistent. It increases with the size of growth forecast errors and the extent to which fiscal targets are tightened, factors not fully under the control of regional governments. Non-compliance also tends to increase during election years, when vertical fiscal imbalances accentuate, and market financing costs subside. Strong fiscal rules have not shown any significant impact in containing fiscal non-compliance. Reducing fiscal non-compliance in multilevel governance systems such as the one in Spain requires a comprehensive assessment of intergovernmental fiscal arrangements that looks beyond rules-based frameworks by ensuring enforcement procedures are politically credible.
Intergovernmental Relations and Fiscal Discipline
Title | Intergovernmental Relations and Fiscal Discipline PDF eBook |
Author | Giuseppe Pisauro |
Publisher | |
Total Pages | 36 |
Release | 2001 |
Genre | Decentralization in government |
ISBN |
Fiscal Adjustment for Stability and Growth
Title | Fiscal Adjustment for Stability and Growth PDF eBook |
Author | Mr.James Daniel |
Publisher | International Monetary Fund |
Total Pages | 80 |
Release | 2006-08-17 |
Genre | Business & Economics |
ISBN | 9781589065130 |
The pamphlet (which updates the 1995 Guidelines for Fiscal Adjustment) presents the IMF’s approach to fiscal adjustment, and focuses on the role that sound government finances play in promoting macroeconomic stability and growth. Structured around five practical questions—when to adjust, how to assess the fiscal position, what makes for successful adjustment, how to carry out adjustment, and which institutions can help—it covers topics such as tax policies, debt sustainability, fiscal responsibility laws, and transparency.
Fiscal Federalism in Latin America
Title | Fiscal Federalism in Latin America PDF eBook |
Author | Eduardo Wiesner Durán |
Publisher | IDB |
Total Pages | 156 |
Release | 2003 |
Genre | Business & Economics |
ISBN | 9781931003483 |
This text helps Latin American policymakers meet the challenge of decentralization to improve public sector performance at all levels of government by appropriately assigning jurisdiction over public goods, services, tax authority and user charges.