Tightened controls will avert Mexican state debt rise

2015 ◽  
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Government Debt ◽  
Oil Price ◽  
National Debt ◽  
Content Type ◽  
Number Of Factors ◽  
Mexican State ◽  
Debt Issuance ◽  
Financial Transparency

Subject Mexican sub-national debt. Significance Mexico's states have long enjoyed considerable freedom to take on debt. However, legislation to tighten the issuing of debt by states and municipalities while increasing their financial transparency was submitted by President Enrique Pena Nieto on August 17. The move was triggered by a number of factors, including the plunge of the global oil price, political changeovers in local governments and excessive debt issuance by some authorities. Impacts Although unlikely, default by Nuevo Leon would shake markets, even affecting the federal government's creditworthiness. The new legislation will ease tensions between outgoing and incoming governments, with twelve states electing new governors in 2016. The level of local government debt will remain low, comparing favourably with other countries in the Americas.

Municipal debt will hinder financial reform in China

2015 ◽  
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Central Government ◽  
Government Debt ◽  
Bank Loans ◽  
Municipal Bonds ◽  
Short Term ◽  
Fiscal Stimulus ◽  
Content Type ◽  
Loan Financing

Subject China's local government debt bailout. Significance China's local governments issued 734 billion renminbi (118 billion dollars) last month, accounting for some 35% of total bond issuance. A 1-trillion-renminbi local government debt-swap programme was introduced in March, under a pilot initiative announced in August 2014, and expanded last month by another 1 trillion renminbi. A slowdown in investment and an increasing use of bank loans by local governments to roll over debt may now have forced the central government to act boldly. Impacts Falling fiscal revenues, policy targets and the legacy of the 2008-09 fiscal stimulus will increase the supply of municipal bonds. State-owned commercial banks under the direction of the PBoC will mop up excess supply. Slower investment and lending puts pressure on central government to accelerate infrastructure investment and public-private partnerships. The PBoC will further adjust bank reserve ratios downwards if the slowdown in investment persists. Shifting away from short-term loan financing will shrink bank margins and slow down interest rate reform.

Democracy and financial transparency of local governments in Sub-Saharan Africa

2020 ◽  
Vol 28 (4) ◽  
pp. 681-699
Author(s):  
Redeemer Krah ◽  
Gerard Mertens
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Local Governments ◽  
Local Governance ◽  
Financial Information ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Public Sector Accounting ◽  
Financial Transparency ◽  
Sub Saharan

Purpose The study aims at examining the level of financial transparency of local governments in a sub-Saharan African country and how financial transparency is affected by democracy in the sub-region. Design/methodology/approach The study applied a panel regression model to data collected from public accounts of 43 local authorities in Ghana from 1995 to 2014. Financial transparency was measured using a transparency index developed based on the Transparency Index of Transparency International and the information disclosure requirements of public sector entities under the International Public Sector Accounting Standards. Findings The study finds the low level of financial transparency among the local governments in Ghana, creating information asymmetry within the agency framework of governance. Further, evidence from the study suggests a strong positive relationship between democracy and financial transparency in the local government. Research limitations/implications Deepening democracy is necessary for promoting the culture of financial transparency in local governance in sub-Saharan Africa, perhaps in entire Africa. Practical implications There is a need for the local governments and governments, in general, to deepen democracy to ensure proactive disclosure of the financial information to the citizens to improve participation trust and eventual reduction in corruption. Effective implementation of the Right to Information Act would also help promote financial and other forms of transparency in the sub-region. Originality/value The study contributes to the public sector accounting literature by linking democracy to financial transparency in the local government. Hitherto, studies concentrate on how entity level variables impact on the level of financial information flow in the local government without considering the broader governance infrastructure within which local governments operate.

The problem of the fiscal common-pool: is there an overlap effect on state and local debt?

2020 ◽  
Vol 32 (2) ◽  
pp. 137-157
Author(s):  
Yu Shi ◽  
Rebecca Hendrick
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Local Governments ◽  
Government Debt ◽  
The State ◽  
Content Type ◽  
Common Pool ◽  
Total Debt ◽  
State And Local ◽  
Debt Levels

PurposeThe objective of the study is to determine if an over-borrowing bias emerges when the state fiscal base is shared by multiple general-purpose and special-purpose jurisdictions serving different groups of citizens.Design/methodology/approachThis study uses panel data from all 50 states in the US from 1997 to 2007 to estimate models of total debt levels of state governments and total debt levels of all local governments aggregated at the state level. For comparison, it also estimates total debt levels of state and local governments taken together for the same years.FindingsThis study finds that jurisdictional overlap will increase state government debt, local government debt, as well as combined state and local government debt.Originality/valueThe finding from the study suggests that the fiscal common-pool model provides a more accurate analysis and more appropriate understanding of the institutional composition at the state and local public sector, especially for the vertical dimension of the local public sector where there are more specialized and overlapping jurisdictions.

Financial determinants of local government debt in New Zealand

2017 ◽  
Vol 29 (4) ◽  
pp. 512-533 ◽  
Author(s):  
Dimu Ehalaiye ◽  
Nives Botica-Redmayne ◽  
Fawzi Laswad
Keyword(s):  
New Zealand ◽  
Local Government ◽  
Interest Rates ◽  
Local Governments ◽  
Government Debt ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Content Type ◽  
Financial Variables ◽  
Low Interest Rates

Purpose The purpose of this paper is to investigate the financial determinants of local government debt in New Zealand. Design/methodology/approach To investigate the financial determinants of local government debt in New Zealand, the authors analyse the relationship between key financial variables with local government debt in New Zealand based on the theories of fiscal accountability and moral hazard using a panel data methodology, specifically the pooled ordinary least squares regression model. Findings The findings suggest that council income is the major financial determinant of local government borrowing in New Zealand rather than infrastructural spending and that during the global financial crises (GFC) borrowing levels of New Zealand local councils was not significantly impacted. However, the findings indicate that post the GFC, low interest rates have stimulated increased borrowing activity by New Zealand local governments to fund infrastructure. Originality/value This paper is the first to examine the determinants of local government debt in New Zealand. The findings of this study contribute to better understanding of local government/municipality debt in New Zealand and internationally by providing evidence on the financial determinants of debt of local governments and the indirect use of government policy to control local government borrowing. The findings of this study are anticipated to affect local government practices and national government policies in relation to local government finances.

Local government website usability on mobile devices: test results and recommendations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Karol Król ◽  
Dariusz Zdonek
Keyword(s):  
Local Government ◽  
Mobile Devices ◽  
Local Governments ◽  
Recent Decade ◽  
Test Results ◽  
Content Type ◽  
Computer Tools ◽  
Website Usability ◽  
Social Importance ◽  
Government Website

Purpose The range of official business that can be handled online has grown in the recent decade. In many cases, e-services are a must. At the same time, the economic impact and social importance of mobile technology have increased. Mobile devices are becoming more and more popular, and their applications diversify. It comes as no surprise that mobile users expect e-services and official information to be available through this channel. The purpose of this paper is to identify problems (difficulties) occurring when browsing websites of local government units (LGU) on mobile devices. Design/methodology/approach The comfort of website browsing depends mostly on the development technique, and the way content is published. Responsive websites are much easier to view on mobile devices than “static” ones. The study involves 400 websites of LGU in Poland. The websites were subjected to quantitative and qualitative analyses with selected techniques and computer tools. Findings The set of 400 websites contained 119 (29.75%) that were not responsive. It exhibited a substantial potential for the optimisation of websites for mobile devices. The study revealed the most common usability failures such as distorted images, “scattered icons”, partial responsiveness and bothersome messages in pop-ups. Originality/value The research identified the most widespread problems with the tested websites. The study yielded recommendations for local governments, which may be useful when managing content, upgrading the website or replacing it with a new one.

scholarly journals Transparency of local government in Indonesia

2018 ◽  
Vol 3 (1) ◽  
pp. 123-138 ◽  
Author(s):  
I Made Pradana Adiputra ◽  
Sidharta Utama ◽  
Hilda Rossieta
Keyword(s):  
Local Government ◽  
Financial Reporting ◽  
Local Governments ◽  
Financial Statements ◽  
Political Environment ◽  
Content Type ◽  
Audit Opinion ◽  
Government Response ◽  
Positive Effect

Purpose The purpose of this paper is to provide empirical evidence about the influence of the size of local government, the quality of local government financial statements, the level of local government response to the disclosure of financial information and the local political environment on the transparency of local government in Indonesia. Design/methodology/approach The study sample consisted of 34 regional governments (provinces) in Indonesia in 2016, using purposive sampling and multiple regression analysis. Findings The results showed that the quality of financial reporting through the audit opinion and political environment have a significant positive effect on the transparency of local government in Indonesia. On the other hand, the size of the local government and local government response rate on the regulation do not affect the transparency of local government in Indonesia. Originality/value The agency, legitimacy and institutional theory have an important role in the underlying local government transparency practices in Indonesia. The results of this study should be used as the basis of thought and study to determine the factors that affect the performance of local governments from the financial and non-financial aspects.

In the Mayor We Trust? Trust as the Micro-Foundation of Complementary Politico-Administrative Relations in Local Governments

2018 ◽  
Vol 51 (4) ◽  
pp. 581-606 ◽  
Author(s):  
Caroline Howard Grøn ◽  
Heidi Houlberg Salomonsen
Keyword(s):  
Mixed Methods ◽  
Local Government ◽  
Local Governments ◽  
Public Officials ◽  
Communication Climate ◽  
Number Of Factors ◽  
Unstable Environment

This article investigates trust between politicians and public officials in local government. Beginning with Svara’s claim that such relations are characterized by complementarity, we point to the importance of trust as the micro foundation for these relationships. Applying a mixed-methods strategy, we investigate a number of factors we expect to be related to the level of trust between politicians and public officials, as perceived by the latter. We find that the communication climate and a clear distribution of tasks correlate positively with trust, whereas an unstable environment correlates negatively with trust.

Corruption as distinct crime: the need to reconceptualise internal control on controlling bureaucratic occupational fraud

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ach Maulidi ◽  
Jake Ansell
Keyword(s):  
Local Government ◽  
Internal Control ◽  
Local Governments ◽  
Internal Controls ◽  
Financial Statement Fraud ◽  
Content Type ◽  
Practical Applications ◽  
Occupational Fraud ◽  
Asset Protection ◽  
Control Framework

Purpose The purpose of this study is to provide theoretical guidance that enables local governments to deal with occupational fraud. Design/methodology/approach The quantitative approach is used to examine the efficacy of the Committee of Sponsoring Organisations of the Treadway Commission (COSO) internal control framework in tackling occupational fraud in local government. To achieve the goals, the authors performed a survey of the Indonesian auditor institutions. Findings It is not appropriate to argue that all types of local government fraud can be deterred by a single internal control. The study suggests that COSO internal controls are not effective for dealing with corruption cases. However, the authors do find the efficacy of those controls are obvious for controlling asset misappropriation and financial statement fraud. This result indicates that if the COSO internal control framework is only designed for routine financial control and asset protection, it significantly and negatively influences its efficacy to deal with occupational fraud. This study has both theoretical and managerial implications, discussed separately. Originality/value In the field of prevention, the authors cannot make generalised theories and approaches for dealing with occupational fraud. Whilst previous authors have offered fraud deterrents in terms of internal controls, they have failed to realise the need to understand their effectiveness for particular forms of fraud. This paper sheds light on the effectiveness of internal controls in achieving their goals. This has both practical applications and stimulates theoretical insights.

“Measuring up”: a systematic literature review of performance measurement in Australia and New Zealand local government

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mary C. Johnsson ◽  
Matthew Pepper ◽  
Oriana Milani Price ◽  
Lauren P. Richardson
Keyword(s):  
Systematic Review ◽  
New Zealand ◽  
Local Government ◽  
Performance Measurement ◽  
Local Governments ◽  
Management Practices ◽  
New Public Management ◽  
Systematic Review Methodology ◽  
Content Type ◽  
Starting Point

Purpose Measurement practices have long been considered vital for informing the management of performance in organisations. Their application to local governments is a more recent, yet multi-decade phenomenon facilitated by New Public Management trends. This paper aims to review the landscape of publications that discuss performance measurement (PM) practices in Australian and New Zealand local government contexts and identify implications for future research. Design/methodology/approach A systematic review methodology was used to identify a shortlist of publications. Next, a rating-based researcher appraisal process was applied. Multiple iterations of search and appraisal were conducted to form the basis for inductive thematic analysis and synthesis. Findings Analysing 65 PM publications, two interrelated themes, namely, discourses of performance as efficiency, accountability or strategic growth and change were identified, which influence the adoption of local PM tools and frameworks. As demands for strategic growth and more complex service delivery increase, strategic and localised adaptation of PMs may be required to integrate learning and communicative competencies with technical and operational capabilities. Research limitations/implications The systematic review methodology has been applied to address some of the limitations of publication and reporting biases in literature. This research provides a starting point for future investigations and broadening of discourse in local government contexts. Originality/value This paper represents the first systematic review of 1995–2020 publications on performance management practices used by local governments in Australia and New Zealand.

scholarly journals Financial statements disclosure on Indonesian local government websites

2019 ◽  
Vol 4 (1) ◽  
pp. 112-128
Author(s):  
Wahyudin Nor ◽  
Muhammad Hudaya ◽  
Rifqi Novriyandana
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Financial Statements ◽  
Education Level ◽  
Content Type ◽  
Audit Opinion ◽  
Level Of Education ◽  
The Public ◽  
Government Websites

Purpose The purpose of this paper is to examine the extent to which audit opinion, audit findings, follow-up audit recommendations, level of education, level of welfare and heads of local governments’ commitment influence the disclosure of financial statements on the official website of local government. Design/methodology/approach The data of this research comprise 68 financial statements during the period 2015–2016 collected from 34 local governments across Indonesia by employing the census method. The data then are analyzed using logistic regression. Findings The results of this study show that audit opinion has a positive significant influence on the disclosure of financial statements on local government websites in Indonesia, while the audit findings, follow-up audit recommendations, level of education, level of welfare and heads of local governments’ commitment have no significant influences on the disclosure of financial statements local governments’ websites across Indonesia. Originality/value The study contributes to the public sector accounting research by enhancing our understanding to the disclosure of financial statements on local government websites.

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