scholarly journals FEATURES OF PLANNING AND IMPLEMENTATION OF LOCAL BUDGETS IN THE CONTEXT OFTHE BUDGET AND DECENTRALIZATION REFORMS

2017 ◽  
pp. 132-144
Author(s):  
Yuliia OSTRISHCHENKO
Keyword(s):  
Local Governments ◽  
Central Government ◽  
Poor Quality ◽  
Intergovernmental Transfers ◽  
Reform Implementation ◽  
Budget Reform ◽  
Subsidiarity Principle ◽  
Planning Methods ◽  
Local Budget ◽  
Budget Revenue

Introduction. Scarce local budget financial resources, lack of sufficient transparency of budget expenditures, and poor quality of public services provided by the central and local governments - all these factors require comprehensive governance reforms introduction primarily budget reform and powerdecentralization reform. Purpose. The aim of the article is to identify special traits and discover challenges of the local budgets planning and execution system, to analyze potential approaches to its improvement based on outcomes and effects of budget reform and local self-government reform implementation in Ukraine. Results. The article summarizes the tasks, measures and achievements of the local budgets reform and intergovernmental relation reform. The changes in the local budget revenue and expenditure structure were analyzed taking into account recent amendments to Budget and Tax Codes of Ukraine. The local budgets planning methods and approaches as well as procedures for fiscal equalization ofthe local government’s financial capacity were investigated; 2010-2017 reporting data on budget revenue and expenditures performance were analyzed. At the same time the article determines key budget parameters preliminarily included in draft 2018 Budget Law and medium-term Budget Declaration, in particular regarding local budgets and intergovernmental transfers and also represents review of progress achieved under the territorial communities’ amalgamation and establishment of direct interrelation between central government and newly formed amalgamated communities. Conclusion. According to the results ofthe research and analysis, the article substantiates the necessity of further local budget revenue amplification, the expediency of the budget decentralization considering budget subsidiarity principle, as well as the effectiveness of the new interbudgetary relation model.

scholarly journals ASSESSMENT OF THE INFLUENCE OF LOCAL BUDGETS ON THE ECONOMIC DEVELOPMENT OF TERRITORIAL COMMUNITIES (ON THE EXAMPLE OF THE BUDGET OF THE CITY OF IRPIN)

2020 ◽  
Author(s):  
Oksana Lisnichuk ◽  
◽  
Vita Shvorak ◽  
Viktoriia Mazur ◽  
◽  
...  
Keyword(s):  
Local Governments ◽  
Specific Weight ◽  
Financial Economic ◽  
Economic Regulation ◽  
Economic Policies ◽  
Intergovernmental Transfers ◽  
Financial Independence ◽  
Economic Relationships ◽  
Local Budget ◽  
The City

The local budgets are an instrument of financial-economic regulation of the development of regions and the State as a whole. Both the efficient formation and administration of local budgets should be based on a combination of financial-economic relationships in the area of revenue generation, implementation of budget expenditures, the inter-budgetary relations and the development together with implementation of the balanced socio-economic policies directed towards ensuring the socio-economic growth of regions. The reform of budget decentralization has provided local governments with broader rights and new sources of financial resources, which has collectively increased the financial viability and autonomy of the regions. In this article article considers the peculiarities of the formation and implementation of local budgets (on the example of the budget of the city of Irpin). The sources of formation are described city budget revenues and directions of their use. In a section of revenue breakdown components of tax revenues on the main taxes and non-tax receipts of the local budget are analyzed. Specific weight of the intergovernmental transfers in the course of formation of income of local budgets is investigated. Analyses directions of use of budgetary resources by local governments. The main problems existing when forming revenues of local budgets are defined. Having analyzed the structure and dynamics of revenues and expenditures of the local budget. The revenues of the local budget of the city of Irpin have shown a growing dynamics, and expenditures tend to increase. The analysis shows that there are tendencies to increase their volume, which is certainly a positive aspect of the activities of local governments and decentralization reform. However, transfers make up an important part of the budget, which is negative, as the city budget is not fully independent. Of course, it is impossible to achieve full financial independence of the region in modern conditions, but it would be expedient to direct the vector of development to achieve financial independence. Analysis of the structure of expenditures by functional classification shows that during 2016-2019 most of the expenditures of local budgets were directed to the socio-cultural sphere. According to the analysis, the city of Irpin has a strong enough financial base to meet the needs of its residents. In addition, the analysis of the use of the city budget shows the diversity of expenditures and the presence of positive experience of community development.

scholarly journals Autonomy of Local Governments in Taxation in Kyrgyzstan

2020 ◽  
Author(s):  
Dastan Aseinov
Keyword(s):  
Local Governments ◽  
Central Government ◽  
Legal Framework ◽  
Tax Revenue ◽  
Government Budget ◽  
Tax Base ◽  
Financial Autonomy ◽  
Tax Revenues ◽  
Different Types ◽  
Local Budget

The authority for taxation might be delegated to the local governments to expand their financial autonomy through increasing their revenue. This study aims to assess the financial autonomy of local governments in Kyrgyzstan in terms of tax revenues. The taxing power of local governments examined using local budget data for period of 2007-2017. We use variables as reflecting the level of taxing power. Variables measured as ratio of total local government tax revenue, different types of taxes revenue to the total revenue or to the total tax revenues. This study also looks at the legal framework for delegating taxation powers to local authorities. The results show that financial autonomy of local governments in terms of taxation is low. Local governments in Kyrgyzstan largely depends on transfers from the central government budget. According to the legal framework, the tax powers of local administrations is within narrow limits. Since increasing the financial autonomy through expanding the taxing power of local governments poses problems this needs to be solved, like a narrow tax base and inefficient tax administration in the regions. Thus, it can be argued that it is too early to transfer taxation power to local governments.

Political Determination of Intergovernmental Grants: Evidence from the General Shared Tax in South Korea

2021 ◽  
Vol 19 (2) ◽  
pp. 263-278
Author(s):  
Sungchan Kim ◽  
Soyoung Park
Keyword(s):  
South Korea ◽  
Political Ideology ◽  
Local Governments ◽  
Central Government ◽  
Municipal Government ◽  
Political Influence ◽  
The Political ◽  
Intergovernmental Transfers ◽  
Allocation Mechanism ◽  
Distribution Of Resources

Intergovernmental transfers can help coordinate resource distribution among local governments to address the disparities between them. Local governments in South Korea heavily rely on general shared tax as an unconditional grant from the central government. Yet, the central government modifies factors and weights in the formula to allocate the grants; thus, the final grants might not always reflect the formula accurately. We aimed to empirically investigate the political influence on the allocation mechanism in practice related to the general shared tax in South Korea. We found that political influence, based on the political ideology of the municipal government chief, which is the same as that of the president, affects the amount of increased general shared tax from the central government. This indicates that the framework for the distribution of resources between different levels of governments is neither efficient nor equitable.

scholarly journals Flypaper Effect in Indonesia: The Case of Kalimantan

2019 ◽  
Vol 4 (4) ◽  
pp. 116-121
Author(s):  
Yarlina Yacoub ◽  
Nindya Lestari
Keyword(s):  
Local Governments ◽  
Central Government ◽  
Least Square Method ◽  
Development Planning ◽  
Jel Classification ◽  
Least Square ◽  
Flypaper Effect ◽  
Intergovernmental Transfers ◽  
Local Revenue ◽  
Government Transfers

Objective – Changes in financial authority as a result of decentralization are expected to make provinces in Indonesia become more flexible in approving their finances. However, it goes beyond central government transfers which make local governments more consumptive, which impacts on the phenomenon of the effect of flypaper. This study aims to identify the influence of the government’s fiscal on regional expenditure and identify the effect of flypaper on the regional expenditure in Kalimantan. Methodology/Technique – The research uses panel data from 56 regencies and cities on Kalimantan Island. Pooled least square method is used. Findings – The results show that intergovernmental fiscal revenue has a significant relationship with expenditure. Further, the flypaper effect occurs in regional expenditure which means that districts and cities in Kalimantan are still dependent on the central government to finance regional expenditures. They are not able to maximize their respective regional income. Novelty – These results indicate that the existence of local revenue derived from taxes has not been able to be optimally absorbed. Thus, dependence on intergovernmental transfers is very high. In addition, the flypaper effect also indicated that the intervention of the central government came into regional development planning programs. Type of Paper: Empirical Keywords: Flypaper Effect; Intergovernmental Transfer; Fiscal; Grants. Reference to this paper should be made as follows: Yacoub, Y; Lestari, N. 2019. Flypaper Effect in Indonesia: The Case of Kalimantan, J. Fin. Bank. Review, 4 (4): 116 – 121 https://doi.org/10.35609/jfbr.2019.4.4(1) JEL Classification: B22, D02, H02, H21, H3.

PROBLEMS OF LOCAL BUDGETS’ ORGANIZATION IN UKRAINE IN THE CONTEXT OF FINANCIAL DECENTRALIZATION

2017 ◽  
pp. 29-41
Author(s):  
Yurij RADELYTSKYJ
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Local Level ◽  
Intergovernmental Transfers ◽  
Financial Autonomy ◽  
Before And After ◽  
Local Budget ◽  
Expert Community

Introduction. Fiscal decentralization as the main vector of development of Ukraine in general and local government in particular has set scientific and expert community task of defining feasibility and effectiveness of the reforms and their compliance with requirements and needs of society. Purpose. Analysis of the tool of organization of local budgets in Ukraine due to decentralization process to define the main results of these innovations and make recommendations for improving the system. Results. Specific features of organization of local budgets in Ukraine in terms of local government reform are observed. It is made comparative analysis of formation and execution of local budgets before and after the reform. Peculiarities of formation of the revenue of local governments are examined. Tax revenue is defined as the main source of local budgets. It is analyzed the main characteristics of collection of major budget-taxes. The features of expenditure policies at the local level are investigated. The main problems of this process are defined. It is investigated the place and role of intergovernmental transfers as a part of local budgets. The features of forming of intergovernmental transfers and horizontal fiscal equalization of local budgets in consequence of financial decentralization are determined. General conclusions resulting from the study are made. Conclusion. Reform of the system of local budgets requires a comprehensive update of local government and simultaneous implementation of sectoral reforms. In the system of local budget revenues development and selection of algorithm of formation of a well-defined orientation to ensure financial autonomy and financial viability and its implementation on an ongoing basis is a priority. The task of reforming expenditure part of local budgets is orientation of financial resources to secure capital expenditures and implementing their own powers of local government.

scholarly journals Desentralisasi Fiskal, Tax Efiort dan Pertumbuhan Ekonomiz Studi Empirik Kabupaten/Kota di Indonesia 2001-2008

2010 ◽  
Vol 11 (1) ◽  
pp. 21-34
Author(s):  
D. S. Priyarsono ◽  
Budi Asih ◽  
Neli Agustina
Keyword(s):  
Economic Growth ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Intergovernmental Transfers ◽  
Positive Role ◽  
Data Set ◽  
Time Period ◽  
Regional Governments

Indonesia has implemented a new policy of regional autonomy and fiscal decentralization for almost ten years. One of the objectives of this fiscal decentralization is to give the full autonomy to local governments in spending and managing their revenues. The local governments have the authority to explore and collect their own-source revenue ('Pendapatan Asli Daerah', or PAD), i.e. through the improvement of their tax effort. The objectives of this study are: (i) to describe the fiscal performance of districts and municipalities in Indonesia, both in the revenue as well as the expenditure sides, (ii) to analyze the effects of intergovernmental transfers (’dana perimbangan', or balancing fund from the central to regional governments) on regional tax efforts, and (iii) to identify the regional economic growth elasticity of intergovernmental transfers and own-source revenue. This study employs a panel data set of 336 districts and municipalities covering the whole area of Indonesia over the time period of 2001-2008. The results show a relatively low contribution of PAD to regional revenues, indicating high fiscal dependency of regional governments on the central government. Intergovernmental transfers positively effect tax efforts. The result of the elasticity analysis also indicates a positive role of the transfers as stimuli to economic growth.

scholarly journals ESTIMATION OF FISCAL SPACE OF LOCAL BUDGETS IN THE CONTEXT OF UKRAINIAN REGIONS DEVELOPMENT

2017 ◽  
pp. 69-81
Author(s):  
Myroslav KHOMIAK
Keyword(s):  
Local Governments ◽  
Fiscal Decentralization ◽  
Intergovernmental Transfers ◽  
Economic Problems ◽  
Academic Literature ◽  
Fiscal Autonomy ◽  
Panel Regressions ◽  
Development Goals ◽  
Fiscal Space ◽  
Local Budget

Introduction. Fiscal decentralization, which is now actively being implemented in Ukraine, provides for increasing the level of fiscal autonomy of local budgets. In this context, it is necessary to assess the real possibilities of local governments to form a fiscal space, which should be understood as the ability to generate income and to implement rational expenditure in order to achieve regional development goals. Purpose. The goal of the article is a quantitative assessment of the fiscal space of local budgets to identify promising areas of fiscal decentralization in Ukraine. Methods. The theoretical basis of the article consists of foreign and domestic academic literature. As a methodological basis are used panel regressions for estimating the tax potential of regions and methods of structural analysis and comparisons - for investigation of trends in local budgets. Results. Formation of the fiscal space of local budgets in the article interpreted as a combination of realization of tax potential and restructuring of expenditures of local budgets. By using panel regressions are identified the regions with the highest tax potential. Based on studying the structure of local budget expenditures revealed that by highest fiscal space are characterized areas where industry is less developed and which are considered less economically successful. Conclusions. The study revealed that regions with low fiscal space and tax potential are forced to generate debt for solving their own financial and economic problems, while regions with high tax potential and greater fiscal space receive significant amounts of intergovernmental transfers and do not form a municipal debt. Despite this, was justified the necessity of the transition to a redistribution of financial resources on the goal-basis principle.

General Budget Support in Tanzania

2018 ◽  
Vol 9 (4) ◽  
pp. 477-491
Author(s):  
Mitsuaki Furukawa ◽  
Junichiro Takahata
Keyword(s):  
Service Delivery ◽  
Empirical Analysis ◽  
Local Governments ◽  
Central Government ◽  
Intergovernmental Transfers ◽  
Content Type ◽  
Budget Support ◽  
Money Flows ◽  
Local Government Expenditures ◽  
Practical Implications

Purpose The purpose of this paper is to analyze late disbursements for service delivery by focusing on donors’ General Budget Support disbursement to Tanzania and on the intergovernmental money flows in Tanzania. Design/methodology/approach The authors examined empirical analysis using statistics of intergovernmental transfers in Tanzania. Findings This paper shows that such center-local transfers are significantly correlated with the timing of local government expenditures in general and health expenditures in particular. It also shows that development expenditures are more affected than recurrent expenditures by delays in the transfer. Practical implications In order to improve service delivery on the ground, the transfers from donors to the central government and from the central government to local governments need to be timely. Originality/value The authors examined empirical analysis using statistics of intergovernmental transfers in Tanzania so as to see whether timing of transfers matters or not, which has not been considered thus far.

scholarly journals Tendenser i stat-kommuneforholdet efter kommunalreformen – fokus på økonomiaftaler og sanktionssystemet

Politik ◽  
2016 ◽  
Vol 19 (2) ◽  
Author(s):  
Niels Jørgen Mau Pedersen
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Rules ◽  
Government Reform ◽  
Economic Significance ◽  
Local Budget ◽  
Cooperation System ◽  
Decentralized Model ◽  
Macroeconomic Management

This article aims at presenting trends in the state-local budget-cooperation system in Denmark, following the local government reform in 2007 and the fiscal rules in the budget law from 2012. The article investigates some of the characteristics of the development from 1980 until 2016. Evidence gives support to the hypothesis that the possibility for the municipalities’ organization to negotiate increasing expenditures has been narrowed, however accompanied by more liberal grant financing. The local government reform seems to have opened a window of opportunity for an elaborated system of collective and especially individual central government sanctions to strengthen the macroeconomic management of service expenditures of local governments. The identified trends in the Danish state-local relations may indicate that the decentralized model of local governments in Denmark is increasingly under pressure. However, the Danish municipal sector is still growing with respect to economic significance.  

scholarly journals The Impact of Intergovernmental Transfers on Fiscal Behaviour of Local Governments in Ethiopia

2020 ◽  
Author(s):  
Bekana Dejene Mamo
Keyword(s):  
Local Governments ◽  
Fiscal Federalism ◽  
Central Government ◽  
State Level ◽  
Intergovernmental Transfers ◽  
Transfer Scheme ◽  
Government Grants ◽  
Revenue Collection ◽  
Political Hierarchy ◽  
The Impact

This paper examines the effect of intergovernmental fiscal transfers on the fiscal behaviour of local governments in Ethiopia for the period 2004-2018. The empirical findings suggest that central government grants bolster state-level employment and expenditure. However, grants from the central government to states do not crowd out state-level revenue collection. Hence, this paper argues that fiscal decentralisation in Ethiopia has mostly, at least in theory, taken the form of devolution of the power to tax and spend public money. However, on average state-level revenue can only finance up to 26 per cent of their annual expenditure. As a result, fiscal federalism in Ethiopia appears to be a form of delegation of spending responsibilities. It has to be considered in the context of a decentralised tax system, but with a transfer scheme and political hierarchy. The results are found to be robust to alternative econometric estimation techniques.

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