scholarly journals VERTICAL FISCAL IMBALANCES IN INDIA: CONCEPT AND MEASUREMENT

Author(s):  
Aditi Agrawal

India is a federation whose roots can be found in the colonial period. Indian federal setup is clearly divided between centre, state and local government and likewise, the sources of revenue and responsibilities are also divided between them. The decentralization process in India is asymmetrical in the sense that decentralization of expenditure has been much more than the revenue decentralization as provided by the Constitution, thereby creating an imbalance in states’ income and spending. When this mismatch between the two is measured at different levels of government, we call it Vertical Fiscal Imbalance. In this paper, I have presented various definitions and measures of VFI given by several economists over the years and tried to measure the extent of VFI that exist in India since 1990-91 to 2014-15. We have used twenty five years data to make an analysis based on the data available in Finance Commission reports and Indian Public Finance Statistics. Our results show that the amount of revenue that has been decentralized over the period of study falls much short of the expenditure requirements that are expected to be met by the state governments. The situation is so intense that the state governments are left with no option other than relying on central transfers for financing their needs and that where the central government enjoys an upper hand and an authoritative power over the internal matters of the states. KEYWORDS: Expenditure, Decentralization, Indian federation, Revenue, Vertical Fiscal Imbalance.

Author(s):  
Arjun Chowdhury

This chapter offers an alternative view of the incidence and duration of insurgencies in the postcolonial world. Insurgencies and civil wars are seen as the primary symptom of state weakness, the inability of the central government to monopolize violence. Challenging extant explanations that identify poverty and low state capacity as the cause of insurgencies, the chapter shows that colonial insurgencies, also occurring in the context of poverty and state weakness, were shorter and ended in regime victories, while contemporary insurgencies are longer and states are less successful at subduing them. The reason for this is the development of exclusive identities—based on ethnicity, religion, tribe—in the colonial period. These identities serve as bases for mobilization to challenge state power and demand services from the state. Either way, such mobilization means that popular demands for services exceed the willingness to disarm and/or pay taxes, that is, to supply the state.


1981 ◽  
Vol 29 ◽  
pp. 19-20
Author(s):  
Mary H. Waite

Because many political science instructors come from another region or state; they feel insufficiently informed in teaching about the state and local government wherein they presently reside. Consequently, instructors generalize about these governments. Yet in many public universities and community colleges, students find the politics in their area pertinent and care less for comparative analysis. In truth, the students probably have a valid point, since the majority will reside in the state where they are attending college.


1934 ◽  
Vol 28 (3) ◽  
pp. 481-488
Author(s):  
Kirk H. Porter

Largely in response to the urgings of the newly elected Democratic governor of Iowa, Clyde L. Herring, the forty-fifth general assembly early in its session passed the necessary legislation to make possible a survey of state and local government in Iowa by the Brookings Institute for Government Research. The survey was begun early in February, 1933; and by the end of July, it was possible to file the report with the interim committee of the legislature which had the matter in hand. This report was published by the state in January, 1934, as a paper-covered volume of 650 closely printed pages.


Author(s):  
Kristīne Kuzņecova

Arvien aktuālāki kļūst jautājumi par valsts un pašvaldības institūciju kompetenci sabiedriskās kārtības un drošības garantēšanā publisku pasākumu laikā. Tiesību aizsardzības iestādēm viens no svarīgākajiem uzdevumiem ir sabiedriskās kārtības un drošības garantēšana šo pasākumu norises vietās. Lai arī būtiska loma tās nodrošināšanā ir atvēlēta pašvaldību institūcijām (pašvaldības policija šobrīd ir viens no nozīmīgākajiem Valsts policijas sadarbības partneriem policijas funkciju pildīšanā), praksē novērojamas vairākas problēmas. Pirmkārt, vai valsts un pašvaldības policijas iestādēm ir pietiekami materiāltehniskie un cilvēkresursi, lai garantētu sabiedrisko kārtību liela mēroga (arī paaugstināta riska) publiskos pasākumos? Otrkārt, vai šo iestāžu darbinieki publisku pasākumu laikā izmanto samērīgus tiesiskos līdzekļus, lai vērstos pret sabiedriskās kārtības pārkāpējiem? Issues affecting the state and local government institution competence in public order and security maintaining in public events is becoming increasingly crucial. One of the most important tasks of the law enforcement agencies is guaranteeing public order and security. Although the crucial role in guaranteeing is devoted to local government bodies, where municipal police institute is currently one of the most important partners of the State Police in police powers provision, in practice are turning out a number of problems. First, whether the state and municipal police authorities have sufficient logistical and human resources to ensure public order in large-scale (and sensitive) public events. Second, whether the enforcement officers during public events use proportionate legal means to crack down violators of public order.


2018 ◽  
Vol 5 (1) ◽  
pp. 83-91 ◽  
Author(s):  
Prabhat Patnaik

India had been envisioned as a federation by our Constitution makers, and so states were assigned some important subjects in which the centre could have no or only limited authority. Thus state governments run by opposition parties could pursue policies different from those of the Central Government in a number of ways. But since the onset of economic ‘liberalisation’ beginning with the late 1980s the financial strength and economic role of the state governments have been constantly undermined. This came, first, through the raising of interest rates to attract foreign finance capital, which created budgetary crises for the states since they fell under heavy debt simply to pay interest on existing debt. Neo-liberal policies were then imposed on them by Finance Commissions which made compliance with these compulsory for centre’s financial assistance. More recently the states’ powers have been further curtailed by the Goods and Services Tax, which has deprived the state government of the power to determine tax rates on goods produced within the states. Another means to the same end has been the centre’s trade agreements with foreign countries, with no reference made to states whose products thereby may be priced out of the market. The demonetisation of 2016, which impacted so destructively on employment and the cooperative sector in the states, was also undertaken by the centre without any reference to the states.


2021 ◽  
Vol 2 (70) ◽  
pp. 202-212
Author(s):  
Jacek Kulicki

In the opinion of the author, doubts are raised as to the manner of determining the scope of the tax and the tax base by relating these elements of the tax to the so-called significant digital presence of the digital sector enterprise in the territory of Poland. The amount of the tax rate (7%) also raises doubts. The introduction of a tax on certain digital services may also be associated with a decrease in income tax revenues of the state and local government budgets.


Author(s):  
R. Kelso

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.


Author(s):  
Laura Thaut Vinson

This chapter explores the problem of rising pastoralist–farmer and ethnic (religious and tribal) violence in the pluralistic Middle Belt region of Nigeria over the past thirty to forty years. In particular, it highlights the underlying issues and conflicts associated with these different categories of communal intergroup violence, the human and material costs of such conflict, and the broader implications for the Nigerian state. The federal government, states, local governments. and communities have not been passive in addressing the considerable challenges associated with preventing and resolving such conflicts. It is clear, however, that they face significant hurdles in resolving the underlying grievances and drivers of conflict, and their efforts have not always furthered the cause of conflict resolution and peacebuilding. Greater attention to patterns of inclusion and exclusion and to the allocation of rights and resources will be necessary, particularly at the state and local government levels, to create a more stable and peaceful Middle Belt.


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