scholarly journals Revenue vs expenditure based fiscal consolidation: the pass-through from federal cuts to local taxes

2021 ◽  
Author(s):  
Luigi Marattin ◽  
Tommaso Nannicini ◽  
Francesco Porcelli
Keyword(s):  
Local Governments ◽  
Transmission Mechanism ◽  
Fiscal Rules ◽  
Fiscal Consolidation ◽  
Local Taxes ◽  
Fiscal Adjustment ◽  
Causal Impact ◽  
Pass Through ◽  
Central Level

AbstractA growing literature emphasizes that the output effect of fiscal consolidation hinges on its composition, as the choice of increasing revenues vs cutting expenditure is not neutral. Existing studies, however, underscore the role of local governments in a federal setting. Indeed, transfer cuts at the central level might translate into higher local taxes, changing the effective composition of the fiscal adjustment. We evaluate this transmission mechanism in Italy, where municipalities below the threshold of 5,000 inhabitants were exempted from (large) transfer cuts in 2012. This allows us to implement a difference-in-discontinuities design in order to estimate the causal impact of transfer cuts on the composition of fiscal adjustment, also because tight fiscal rules impose a balanced budget on Italian municipalities. We find a pass-through mechanism by which local governments react to the contraction of intergovernmental grants by mainly increasing taxes rather than reducing spending. From a political economy perspective, this revenue based fiscal consolidation is driven by local governments with low electoral competition and low party fragmentation.

scholarly journals Optimism Bias in Growth Forecasts—The Role of Planned Policy Adjustments

2020 ◽  
Vol 20 (229) ◽  
Author(s):  
Kareem Ismail ◽  
Roberto Perrelli ◽  
Jessie Yang
Keyword(s):  
Economic Growth ◽  
Strong Correlation ◽  
Global Financial Crisis ◽  
Fiscal Consolidation ◽  
Fiscal Adjustment ◽  
The Global Financial Crisis ◽  
Financial Arrangements ◽  
Policy Adjustments ◽  
Growth Forecasts

Are IMF growth forecasts systematically optimistic? And if so, what is the role of planned policy adjustments on this outcome? Are program forecasts as biased as surveillance forecasts? We try to answer these questions using a comprehensive database on IMF forecasts of economic growth in surveillance and program cases during 2003–2017. We find that large planned fiscal and external adjustments are associated with optimistic growth projections, with significant non-linearities for both program and surveillance cases. Specifically, we find evidence that larger planned fiscal adjustment is associated with higher growth optimism in IMF non-concessional, non-precautionary financial arrangements. Our results show the tendency for optimism has persisted in the period after the Global Financial Crisis. Moreover, the strong correlation between the magnitude of the optimism and expected fiscal consolidation provides a cautionary signal for the post-COVID IMF projections as countries embark on a path of fiscal adjustment.

scholarly journals Analytical evaluation of local budget revenue structure under the conditions of financial decentralization

2021 ◽  
Vol 69 (2) ◽  
pp. 95-102
Author(s):  
I. Tsymbaliuk ◽  
V. Smaliukh ◽  
O. Kolisnychenko
Keyword(s):  
Local Governments ◽  
Financial Institution ◽  
General Structure ◽  
Central Place ◽  
Analytical Evaluation ◽  
Local Taxes ◽  
Tax Revenues ◽  
Local Budget ◽  
Decentralization Reform

It is determined that local budgets are the main financial institution in the financial system of local governments, occupying the central place in the economic system of each state. The objective of the paper is to analyze the structure of local budget revenues and determine the areas for its optimization. The paper provides the analytical evaluation of the local budget revenues structure. The results of the analysis of the local budget revenues structure showed the strengthening of the tax revenues role in the consolidated budget revenues of Ukraine. The role of inter-budget transfers in the formation of local budget revenues is determined. Indicators of the volume and dynamics of tax revenues in the structure of the revenue side of local budgets are considered. The general structure of tax revenues is analyzed. The share of basic taxes in the total amount of local budget revenues is determined. The general structure of tax revenues is analyzed. The share of basic taxes in the total amount of local budget revenues is determined. Special attention is paid to the system of local taxes and fees and its transformation in the context of financial decentralization reform. Disclosure of the of local budget revenues structure and the role of taxes in their formational make it possible to establish that budget revenues are tax, non-tax and other revenues that are carried out on the non-refundable basis and the solution provided by the legislation of Ukraine. It is established that the share of own revenues of local budgets is gradually increasing, at the same time, there is a significant dependence of local budgets on inter-budget transfers, which contradicts the principles of financial decentralization and does not ensure the effective development of the regions. Analysis of the local budget revenues structure shows the strengthening of the tax revenues role, which is the consequence of the decentralization reform. It is defined that the significant changes took place in 2015, and as a result the share of local taxes and fees in local budget revenues reached 22.4%. The largest specific share in the structure of local taxes and fees are the revenues from land fees and the single tax. At the same time, the largest source of pumping up the budgets is personal income tax (PIT). On the basis of the above mentioned it is proved the reform of the system of taxation by local taxes and fees should be aimed at strengthening the revenue share of local budgets and increase their financial independence.

OPTIMALISASI PERAN PEMDA DALAM MENGATASI KENDALA PELAKSANAAN KONSERVASI KEANEKARAGAMAN HAYATI DI DAERAH (STUDI KASUS PROVINSI BENGKULU)

2020 ◽  
Vol 15 (2) ◽  
Author(s):  
Antung Deddy Radiansyah
Keyword(s):  
Local Government ◽  
Biodiversity Conservation ◽  
Local Governments ◽  
Central Government ◽  
Wild Plants ◽  
Regional Government ◽  
Conservation Areas ◽  
Conservation Area ◽  
Conservation Policies

Gaps in biodiversity conservation management within the Conservation Area that are the responsibility of the central government and outside the Conservation Areas or as the Essential Ecosystems Area (EEA) which are the authority of the Regional Government, have caused various spatial conflicts between wildlife /wild plants and land management activities. Several obstacles faced by the Local Government to conduct its authority to manage (EEA), caused the number and area of EEA determined by the Local Government to be still low. At present only 703,000 ha are determined from the 67 million ha indicated by EEA. This study aims to overview biodiversity conservation policies by local governments and company perceptions in implementing conservation policies and formulate strategies for optimizing the role of Local Governments. From the results of this study, there has not been found any legal umbrella for the implementation of Law number 23/ 2014 related to the conservation of important ecosystems in the regions. This regulatory vacuum leaves the local government in a dilemma for continuing various conservation programs. By using a SWOT to the internal strategic environment and external stratetegic environment of the Environment and Forestry Service, Bengkulu Province , as well as using an analysis of company perceptions of the conservation policies regulatary , this study has been formulated a “survival strategy” through collaboration between the Central Government, Local Governments and the Private Sector to optimize the role of Local Government’s to establish EEA in the regions.Keywords: Management gaps, Essential Ecosystems Area (EEA), Conservation Areas, SWOT analysis and perception analysis

scholarly journals Dataset on SARS-CoV-2 non-pharmaceutical interventions in Brazilian municipalities

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Andreza Aruska de Souza Santos ◽  
Darlan da Silva Candido ◽  
William Marciel de Souza ◽  
Lewis Buss ◽  
Sabrina L. Li ◽  
...  
Keyword(s):  
Local Governments ◽  
Federal District ◽  
Social Distancing ◽  
Survey Responses ◽  
Municipal Level ◽  
Pharmaceutical Interventions

AbstractBrazil has one of the fastest-growing COVID-19 epidemics worldwide. Non-pharmaceutical interventions (NPIs) have been adopted at the municipal level with asynchronous actions taken across 5,568 municipalities and the Federal District. This paper systematises the fragmented information on NPIs reporting on a novel dataset with survey responses from 4,027 mayors, covering 72.3% of all municipalities in the country. This dataset responds to the urgency to track and share findings on fragmented policies during the COVID-19 pandemic. Quantifying NPIs can help to assess the role of interventions in reducing transmission. We offer spatial and temporal details for a range of measures aimed at implementing social distancing and the dates when these measures were relaxed by local governments.

Industrial Policy and Local Economic Transformation: Evidence From the U.S. Rust Belt

2021 ◽  
pp. 089124242110228
Author(s):  
Ben Armstrong
Keyword(s):  
Industrial Policy ◽  
Local Governments ◽  
State Level ◽  
Economic Transformation ◽  
Local Economy ◽  
Rust Belt ◽  
Industrial Policies ◽  
Cast Doubt ◽  
State And Local

State and local governments frequently invest in policies aimed at stimulating the growth of new industries, but studies of industrial policy and related economic development initiatives cast doubt on their effectiveness. This article examines the role of state-level industrial policies in contributing to the different economic trajectories of two U.S. metro areas—Pittsburgh, Pennsylvania, and Cleveland, Ohio—as they adapted to the decline of their legacy industries. Comparative case studies show that industrial policies in Pittsburgh, which empowered research universities as local economic leaders, contributed to the transformation of the local economy. In Cleveland, by contrast, state industrial policies invested in making incremental improvements, particularly in legacy sectors. The article concludes that by empowering new local economic actors—such as universities—industrial policies can foment political change that enables structural economic change to follow.

Training Administrators To Use Microcomputers

1985 ◽  
Vol 44 ◽  
pp. 1-4
Author(s):  
Robert H. Rittle
Keyword(s):  
Local Government ◽  
Public Administration ◽  
Local Governments ◽  
Computer Literacy ◽  
City Management ◽  
Public Administrators ◽  
Public Administration Review ◽  
Management Association ◽  
University Training

Some are born to computer literacy, while others have literacy thrust upon them! Students who comprise the next generation of political scientists and public administrators will, in many cases, fall into the latter category. This article concerns the role of university training programs in meeting the increasing demands for microcomputer skills.The January, 1984 issue of Public Administration Review included five articles concerning microcomputers in local government. These articles anticipate “major changes in the way local governments organize and the means by which they carry out operations,” as a result of microcomputer technology. Predicting a significant impact of microcomputers in local government, the International City Management Association has also published a major monograph on microcomputer use (Griesemer, 1984).

COUNTERCYCLICAL ROLE OF STATE AND LOCAL GOVERNMENTS

1958 ◽  
Vol 11 (4) ◽  
pp. 371-376
Author(s):  
JAMES A. MAXWELL
Keyword(s):  
Local Governments ◽  
State And Local
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