scholarly journals Fiscal Federalism in Nepal: Challenges and Opportunities

2019 ◽  
Vol 2 (1) ◽  
pp. 151-170
Author(s):  
R. K. Shah
Keyword(s):  
Natural Resources ◽  
Local Governments ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Resource Distribution ◽  
National Level ◽  
The State ◽  
Federal States ◽  
Challenges And Opportunities ◽  
State And Local

The Constitution of Nepal was formally promulgated and it declared the country as a Federal Democratic Republic on September 20, 2015 by the Second CA. Fiscal powers were shared among the federal government, the state governments and the local governments. The Constitution further defined the framework of fiscal federalism within the pattern of income and resource distribution. The primary objectives of this study is to review the modality presented in the new Constitution on the natural resources, economic rights and revenue allocation. The study finds that the fiscal decentralization initiatives have not been successful in minimizing the political, social, economic, regional and ethnic inequalities inherent for nearly 240 years of a unitary system of governance in Nepal. The study recommends that VAT, excise duties and income taxes have to be allocated at the federal, states and local levels in the ratio of 70 percent, 15 percent and 15 percent respectively by the Constitution. Intergovernmental transfer modality has included in the Constitution. Revenue sharing from hydropower has been a controversial issue in Nepal. National Natural Resources and Fiscal Commission (NNRFC) has been constituted at the central level to make national level development plans and to make recommendations for additional grants and loans for the state and local governments. The Constitution has further defined the framework of fiscal federalism within the pattern of income and resource distribution. The theoretical study indicates that there is various controversial and overlapping issues required clarity in process of implementation in the years to come.

scholarly journals ADMINISTRATIVE-TERRITORIAL REFORM IN UKRAINE: NORMATIVE-LEGAL ASPECT OF DECENTRALIZATION REFORM IN UKRAINE

2021 ◽  
Vol 1 ◽  
pp. 102-124
Author(s):  
Olena Lisova ◽  
Maxim Shevyakov ◽  
Olena Orlova
Keyword(s):  
Local Governments ◽  
Spatial Organization ◽  
Legal Aspect ◽  
National Level ◽  
Legal Framework ◽  
The State ◽  
Reform Process ◽  
Territorial Organization ◽  
State And Local ◽  
Decentralization Reform

The need for effective, capable self-government inevitably faces the need to change the spatial organization of local governments. In turn, the territorial organization of executive bodies also turned out to be far from optimal. In Ukraine, there have been discussions for many years about the reorganization (reform) of the entire system of public power in the country. But they have mainly always concerned the redistribution of powers in the power triangle at the national level: President - Parliament - Government. Since independence, changes have taken place here many times. However, despite the changes taking place in this redistribution at the national level, people living in specific towns and villages continue to face the same problems. To date, not clear enough mechanisms have been implemented to form effective local self-government and territorial organization of government to ensure the provision of high quality and affordable public services, meet the interests of citizens in all spheres of life in the territory, harmonize the interests of the state and local communities, establishing cooperation between the authorities and local governments. Currently, the second stage of decentralization in Ukraine continues in 2020-2021. The Cabinet of Ministers of Ukraine has identified the need for further reform process, introduction of decentralization in Ukraine as one of the priorities in the state, which will continue the development of local self-government, territorial communities and in general will enable the growth of Ukraine's economic indicators. In this regard, this article is aimed at studying the state of administrative-territorial reform in Ukraine, as well as outlining areas for improving the legal aspect of decentralization reform in Ukraine, as for further development of the legal framework, to continue the reform requires a number of important laws.

scholarly journals Reviving Leviathan: Fiscal Federalism and the Growth of Government

2003 ◽  
Vol 57 (4) ◽  
pp. 695-729 ◽  
Author(s):  
Jonathan Rodden
Keyword(s):  
Government Spending ◽  
Tax Competition ◽  
Local Governments ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Public Expenditures ◽  
Intergovernmental Transfers ◽  
Tax Base ◽  
Local Taxation ◽  
State And Local

AbstractThis article revisits the influential “Leviathan” hypothesis, which posits that tax competition limits the growth of government spending in decentralized countries. I use panel data to examine the effect of fiscal decentralization over time within countries, attempting to distinguish between decentralization that is funded by intergovernmental transfers and local taxation. First, I explore the logic whereby decentralization should restrict government spending if state and local governments have wide-ranging authority to set the tax base and rate, especially on mobile assets. In countries where this is most clearly the case, decentralization is associated with smaller government. Second, consistent with theoretical arguments drawn from welfare economics and positive political economy, I show that governments grow faster as they fund a greater portion of public expenditures through intergovernmental transfers.

scholarly journals Fiscal Federalism Model in Nepal: An Analytical Study

2016 ◽  
Vol 30 (2) ◽  
pp. 123-138
Author(s):  
R. K. Shah
Keyword(s):  
Natural Resources ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
National Level ◽  
Primary Objective ◽  
State Planning ◽  
Economic Rights ◽  
State Planning Commission ◽  
Development Plans ◽  
National Governments

The Constitution of Nepal as Federal Democratic Republic was promulgated on September 20, 2015 by the second CA. The primary objective of this study is to review the modality presented in the new constitution on the natural resources, economic rights and revenue allocation. The study finds that the fiscal decentralization initiatives have not been successful in minimizing the political, social, economic, regional and ethnic inequalities inherent for nearly 240 years of a unitary system of governance in Nepal. The study recommends that VAT and income taxes will have to be collected concurrently at both the central and sub-national levels. Other taxes including excise duties will have to be collected by the sub-national governments which will support the expenditure responsibilities of the sub national governments adequately in federal Nepal. Intergovernmental transfer modality has to be included in the constitution. National Natural Resources and Fiscal Commission (NNRFC) have been constituted at the central level to make national level development plans and to make recommendations for additional grants and loans. A State Planning Commission (SPC) and a State Fiscal Commission (SFC) can be established in each state to prepare state development plans and to deal with the transfers to be made to local bodies.

scholarly journals The Evolutionary Paradigm of Fiscal Federalism: Transformation of the United States Experience into Ukrainian Decentralism

2021 ◽  
Vol 8 (523) ◽  
pp. 109-116
Author(s):  
A. I. Krysovatyy ◽  
◽  
F. P. Tkachyk ◽  
Keyword(s):  
United States ◽  
United States Of America ◽  
Local Governments ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
The United States ◽  
Public Authorities ◽  
Fiscal Autonomy ◽  
State And Local ◽  
States Experience

The modern paradigm of effective social and economic development of regions must take into consideration the dialectics of fiscal federalism in the symbiosis of its essential determinants with fiscal decentralization. The purpose of the article is to scientifically and conceptually substantiate the model of fiscal federalism of the United States of America in the field of implementation of adequate provisions into Ukrainian decentralization. The article examines the conceptual provisions of fiscal federalism, substantiates the forms of decentralization of powers among levels of government. The architectonics and evolutionary paradigm of fiscal federalism in the United States of America are covered. The risks and effects of fiscal federalism were monitored for the purposes of implementing its basic aspects into Ukrainian practice. Theories of the first and second generations of fiscal federalism are considered. It is ascertained, that the principles of fiscal federalism are used in the practice of unitary countries. Public authorities actively apply mechanisms of cooperation with municipalities in the context of delegation of tax and expenditure powers. Emphasis is placed on the tax component of the intensification of fiscal autonomy of local governments. At the same time, the experience of the United States of America has shown the importance of directing grants and transfers to social projects of municipalities. The priorities of adaptation of actual postulates of fiscal federalism into Ukrainian system of interbudgetary relations under conditions of decentralization of powers are outlined. It is emphasized that fiscal federalism should not be limited to the redistribution of financial resources between the State and local governments. It should encourage amalgamated territorial hromadas to financial autonomy and increase tax potential to improve the prosperity of citizens

scholarly journals ADMINISTRATIVE-TERRITORIAL REFORM IN UKRAINE: NORMATIVE-LEGAL ASPECT OF DECENTRALIZATION REFORM IN UKRAINE

2021 ◽  
Vol 1 ◽  
pp. 112-124
Author(s):  
Olena Lisova ◽  
Maxim Shevyakov ◽  
Olena Orlova
Keyword(s):  
Local Governments ◽  
Spatial Organization ◽  
Legal Aspect ◽  
National Level ◽  
Legal Framework ◽  
The State ◽  
Reform Process ◽  
Territorial Organization ◽  
State And Local ◽  
Decentralization Reform

The need for effective, capable self-government inevitably faces the need to change the spatial organization of local governments. In turn, the territorial organization of executive bodies also turned out to be far from optimal. In Ukraine, there have been discussions for many years about the reorganization (reform) of the entire system of public power in the country. But they have mainly always concerned the redistribution of powers in the power triangle at the national level: President - Parliament - Government. Since independence, changes have taken place here many times. However, despite the changes taking place in this redistribution at the national level, people living in specific towns and villages continue to face the same problems. To date, not clear enough mechanisms have been implemented to form effective local self-government and territorial organization of government to ensure the provision of high quality and affordable public services, meet the interests of citizens in all spheres of life in the territory, harmonize the interests of the state and local communities, establishing cooperation between the authorities and local governments. Currently, the second stage of decentralization in Ukraine continues in 2020-2021. The Cabinet of Ministers of Ukraine has identified the need for further reform process, introduction of decentralization in Ukraine as one of the priorities in the state, which will continue the development of local self-government, territorial communities and in general will enable the growth of Ukraine's economic indicators. In this regard, this article is aimed at studying the state of administrative-territorial reform in Ukraine, as well as outlining areas for improving the legal aspect of decentralization reform in Ukraine, as for further development of the legal framework, to continue the reform requires a number of important laws.

scholarly journals Evaluation of the Fiscal Decentralization: Case Studies of European Union

2020 ◽  
Vol 31 (1) ◽  
pp. 84-92
Author(s):  
Neringa Slavinskaite ◽  
Miloslav Novotny ◽  
Dainora Gedvilaitė
Keyword(s):  
European Union ◽  
Economic Development ◽  
Local Governments ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Theoretical Aspect ◽  
The State ◽  
The European Union ◽  
The Impact ◽  
Positive Effect

Fiscal decentralization has been widely discussed at various levels and from various perspectives. The Organization for Economic Co-operation and Development (the OECD), similar to the World Bank, also pays great attention to it. Fiscal decentralization has always been an interesting investigation topic, and the researchers, in addition to considering the future of the economy, study this problem from different perspectives, i.e. geographic, political and others. The effect of fiscal decentralization on the economic development of the state has been investigated by various authors. Three different hypotheses provide the proofs of the positive effect of fiscal decentralization. The main advantage of fiscal federalism are efficient and adequate public services which are provided locally through the mobility of the citizens, voting power and competition between the local governments in the created ecosystem. The potential advantages of the competition among the local government powers are similar to the advantages associated with the competition on the private markets. The paper is focussed on fiscal decentralization of the state. It aims to investigate the theoretical aspect of the impact of fiscal decentralization on the economic development to calculate the index of fiscal decentralization and to evaluate the effect of fiscal decentralization on the economic development in the particular states of the European Union. Thus, Bulgaria and Lithuania have the lowest fiscal decentralization index of EU-13 (0.28), while the Czech Republic has the highest index (0.46). The researchers have proved the effect of fiscal decentralization on the economic development of the EU-13 states to be statistically significant and positive. The originality of this paper is that it introduces a theoretical model for evaluating the fiscal decentralization effect on the economic development and assesses the fiscal decentralization effect on the economic development of the particular EU-13 states.

scholarly journals The Green Innovation Effect on Heavy-Polluting Enterprises Under the Environmental Protection Law

2021 ◽  
Vol 9 ◽  
Author(s):  
Leqian Ouyang ◽  
Daming You
Keyword(s):  
Environmental Protection ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Negative Impact ◽  
National Level ◽  
Green Innovation ◽  
Eastern Area ◽  
Long Run ◽  
The Difference ◽  
Financial Power

One of the main purposes of the 2015 Environmental Protection Law (EPL) of the People's Republic of China is to boost the green innovation of the enterprises. Using heavy-polluting enterprises as examples, this paper uses the Difference-in-difference analysis (DDD) technique to analyze the influence of EPL on the green innovation of enterprises under fiscal decentralization and enterprise heterogeneity. Results show that EPL exerts a negative impact on the green innovation of heavy-polluting enterprises at the national level, as well as those in the central and western areas specifically. The only presence of positive motivation for green innovation is being found in the eastern area, although, the motivation seems to be insignificant. The negative impacts have been lasting in the long run, especially for the low-performance enterprises in the central areas. As for the targeted implementation of EPL in China, local governments should make the best use of financial power under fiscal decentralization. This balanced approach is designed to motivate enterprises in different regions with various performance levels to develop green innovation based on their different weaknesses and strengths.

Inter-Governmental Relations in the Provision of Local E-Services

2011 ◽  
pp. 1120-1124
Author(s):  
R. Kelso
Keyword(s):  
Federal Government ◽  
Local Governments ◽  
Economies Of Scale ◽  
New Technologies ◽  
The State ◽  
Federal State ◽  
State Governments ◽  
Political Commentary ◽  
Commonwealth Government ◽  
State And Local

Australia is a nation of 20 million citizens occupying approximately the same land mass as the continental U.S. More than 80% of the population lives in the state capitals where the majority of state and federal government offices and employees are based. The heavily populated areas on the Eastern seaboard, including all of the six state capitals have advanced ICT capability and infrastructure and Australians readily adopt new technologies. However, there is recognition of a digital divide which corresponds with the “great dividing” mountain range separating the sparsely populated arid interior from the populated coastal regions (Trebeck, 2000). A common theme in political commentary is that Australians are “over-governed” with three levels of government, federal, state, and local. Many of the citizens living in isolated regions would say “over-governed” and “underserviced.” Most of the state and local governments, “… have experienced difficulties in managing the relative dis-economies of scale associated with their small and often scattered populations.” Rural and isolated regions are the first to suffer cutbacks in government services in periods of economic stringency. (O’Faircheallaigh, Wanna, & Weller, 1999, p. 98). Australia has, in addition to the Commonwealth government in Canberra, two territory governments, six state governments, and about 700 local governments. All three levels of government, federal, state, and local, have employed ICTs to address the “tyranny of distance” (Blainey, 1967), a term modified and used for nearly 40 years to describe the isolation and disadvantage experienced by residents in remote and regional Australia. While the three levels of Australian governments have been working co-operatively since federation in 1901 with the federal government progressively increasing its power over that time, their agencies and departments generally maintain high levels of separation; the Queensland Government Agent Program is the exception.

scholarly journals Interrogating the Revenue Allocation in Intergovernmental Relations, Fiscal Federalism and Local Government Finance in Nigeria

2017 ◽  
Vol 6 (2) ◽  
pp. 71
Author(s):  
Bolanle W. Shiyanbade
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Fiscal Federalism ◽  
Intergovernmental Relations ◽  
Good Governance ◽  
National Income ◽  
Revenue Generation ◽  
Local Council ◽  
Revenue Allocation ◽  
State And Local

This study examined the relationship between fiscal federalism, governance and local government finances in Nigeria, focusing on the administration of local governments and other subsidiary issues on revenue generation in the country. It analysed the legal, institutional and procedural mechanisms for administration, as well as assessed the effect of intergovernmental relations on local government under federal system of governance in the country. This is with a view to providing information on revenue allocation and intergovernmental relations as important elements in understanding and addressing the fiscal federalism on local council finance in Nigeria in the context of their divergent governance experiences since the fourth republic.The paper discovered that beyond the function of revenue generation or allocation, fiscal relations influenced governance positively by creating the expediency of transparency and responsiveness in government as well as a corresponding three levels of government has responsibilities and roles to play in the lives of citizenry in order to bring governance to the grassroots. However, the work found evidences of lack of fiscal autonomy and independent of local government as well as delay in local government election has resulted to poor performance of local administration in Nigeria at large. The results also revealed that a very important factor affecting the local government administration in Nigeria still remains the overbearing contribution of about 93% oil revenue to the national income; a situation that, both state and local governments in Nigeria cannot generate up to twenty five percent (25%) of their expenditure and poor tax culture amongst the citizenry. The study concluded among others that effective human resources, improved strategy, and enhanced capacity building, are critical to improved revenue generation and allocation, which in turn could go a long way to alleviating good governance in Nigeria.

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