Rwanda: Lessons from Applied Intergovernmental Fiscal Equalization Formula

2020 ◽  
Vol 8 (4) ◽  
pp. 101-109
Author(s):  
Ludovick Leon Shirima

It is a well-known fact that budgetary allocations need to be based on a just formula for balanced service delivery in the modern world. This paper describes the intergovernmental formula designed for Rwanda in 2003 to allocate grants from the central to local governments (LGs). First, the previous criterion, the Local Authority Budget Support Fund, was reviewed. This was followed by a literature review and field visits. Finally, the specifications of the mathematical model are described, followed by the proxy selection, data analysis, econometric evaluation, and estimations used in the study. In 2003, data analysis revealed that LGs had low fiscal capacities and ubiquitous fiscal needs. These were proxied by mean own source revenues and expenditure needs, respectively, in the proposed formula. The difference between the two was taken as the mean fiscal gap. This formula corrected the inherent weaknesses in the previous transfer system. It proposed weighting parameters to determine subnational transfer entitlements. Additionally, it constructed and applied welfare poverty and fiscal gap indices that captured the behavior of LGs in terms of wellbeing, fiscal needs, and revenue capacity for the first time in Rwanda. The study recommendations were entirely adopted by the government. The formula was used to allocate unconditional grants from the central government to LGs to improve service delivery and reduce poverty. The study also highlights that any successful transfer formula design depends on how the following are determined—the transfer pool, weights, proposed variables, and proxy indices—and how they enter the model.

2018 ◽  
Vol 13 (04) ◽  
Author(s):  
Lisa Tivani Langi ◽  
David P. E. Saerang ◽  
Jessy D.L Warongan

At first PBB-P2 was levied by the central government. The transfer of UN-P2 in Southeast Minahasa district begins on January 1, 2014 and is expected to increase the Local Revenue (PAD) and at the same time improve the structure of Regional Revenue and Expenditure Budget (APBD), improve public services, accountability and transparency in the management of PBB-P2. The purpose of this study was to analyze how the collection and recording of PBB-P2 at the Government of South Minahasa District. The purpose of this research is to know and analyze the collection and recording of PBB-P2 in South Minahasa. The type of research used is descriptive qualitative research. The result of the research shows that the PBB-P2 collection in Southeast Minahasa Regency still has obstacles, namely Taxpayer Notification Name (SPPT) which isn’t in accordance with the name of tax object, the existence of double SPPT, the SPPT but the location of the tax object is unknown, the lack of awareness in making the payment of PBB -P2 by taxpayers domiciled outside the region but has a tax object in the region. Recording of PBB-P2 revenue is still the difference between budget realization of PBB-P2. It is recommended that the Regional Finance Board of Southeast Minahasa hold socialization to local governments and local communities regarding the implementation of PBB-P2 collections, so that taxpayers have a concern in the case of PBB-P2 payments on time and active in reporting the object/subject of tax when there are problems encountered.Keywords : Collection, accounting records, PBB-P2


2018 ◽  
Vol 9 (4) ◽  
pp. 477-491
Author(s):  
Mitsuaki Furukawa ◽  
Junichiro Takahata

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.


2019 ◽  
Vol 2 (1) ◽  
pp. 24
Author(s):  
Nurwita Ismail

ABSTRACTDekonsentrasi Authority of the head of the region in implementing the financial management of this Research Area focuses on these problems. Using research methods normative legal science by using qualitative data analysis, comprehensive, and complete. Sebingga it was found that the results of research, organization of dekonsentrasi committed by the local government in line with the Undang-undnag Number 33 Year 2014 about equalization kuangan Central Government and local governments should It is a comprehensive system. Financial equalization is carried out in line with the governmental affairs division between the Government and the Government of the region, which is in the system settings not only covers aspects of revenue areas, but also aspects of the management and accountability. In line with that, then surrender the authority of the Government, pelimpahan the authority of Government, and the assignment from the Government in the framework of the Organization of the principle of decentralization, dekonsentrasi, and pembantuan should also be followed with the settings funding and utilization of the national resources efficiently and effectively.  


2011 ◽  
Vol 13 (4) ◽  
pp. 415-434
Author(s):  
Haryo Kuncoro

This paper is designed to analyze the sustainability of the central government budget in the case of Indonesia over the period of 1999-2009. First, we explore the theoretical background of the fiscal sustainability. Second, we develop a model to capture some factors determining the fiscal sustainability. Unlike the previous studies, we use both domestic debt and foreign debt to assess the fiscal solvency. Finally, we estimate it empirically. Based on the quarterly data analysis, we concluded that the government budget is unsustainable. This is associated with domestic debt rather than foreign debt. They imply that the central government should manage the debts carefully including re-profile, re-schedule, and re-structure them in order to spread the excess burden in the future. Also, the fiscal risks should be calculated comprehensively in order to maintain solvency.Keywords: Domestic debt, Foreign debt, Fiscal sustainability, Primary balanceJEL Clasbsification: E62, H63


Yurispruden ◽  
2021 ◽  
Vol 4 (2) ◽  
pp. 208
Author(s):  
Fahrul Abrori

 ABSTRAKPandemi Covid-19 yang terjadi di Indonesia membuat pemerintah membuat kebijakan-kebijakan sebagai stimulus untuk menjaga kestabilan masyarakat dan perekonomian. Pemerintah pusat memberikan kewenangan kepada pemerintah daerah untuk mengelola keuangan daerah untuk menangani covid-19 di daerah masing-masing. Hal ini disebabkan karena pemerintah daerah lebih memahami kebutuhan daerahnya. Permasalahan yang diangkat Pertama, bagaimana hubungan Pemerintah Pusat dan Pemerintah Daerah dalam pengelolaan keuangan untuk penanganan pandemi Covid-19? Kedua, Apa peran Pemerintah Daerah dalam pengelolaan keuangan daerah untuk penanganan pandemi Covid-19? Menggunakan metode penelitian yuridis normatif dengan pendekatan perundang-undangan dan pendekatan konsep. Hubungan Pemerintah Pusat dan Pemerintah Daerah dalam Pengelolaan Keuangan untuk Penanganan Pandemi Covid-19 yaitu desentralisasi fiskal yang mana. Peran Pemerintah Daerah dalam Pengelolaan Keuangan Daerah untuk Penanganan Pandemi Covid-19 yaitu dengan melakukan refocusing kegiatan, realokasi anggaran, dan Penggunaan Anggaran Pendapatan dan Belanja Daerah.Kata kunci: Pemerintah Daerah, Pengelolaan Keuangan Daerah, Pandemi Covid-19 ABSTRACTThe Covid-19 pandemic in Indonesia led the government to make policies as a stimulus to maintain the stability of society and the economy. The central government authorizes local governments to manage local finances to deal with covid-19 in their respective regions. This is because the local government better understands the needs of the region. The issue raised first, how is the relationship between the Central Government and Local Government in financial management for the handling of the Covid-19 pandemic? Second, What is the role of local governments in regional financial management for the handling of the Covid-19 pandemic? Using normative juridical research methods with statutory approaches and concept approaches. The relationship between the Central Government and Local Government in Financial Management for the Handling of the Covid-19 Pandemic is fiscal decentralization. The role of local governments in regional financial management for the handling of the Covid-19 pandemic is by refocusing activities, reallocating budgets, and using regional budgets.Keywords: Local Government, Regional Financial Management, Covid-19 Pandemic


Author(s):  
Siswayudi Azhari

<p>Today the world has entered the era of modern air transport where human movement needed to support facilities and infrastructure that support for the movement of activity. The number of routes and flights are always growing by leaps and bounds every year.</p><p>In Indonesia alone by more than 10 of the largest airliner in which two, namely Garuda Indonesia and Lion Airline, based on data in 2012 each have no less than 50 routes per day and more than 4,000 flights per week [1] (web magazine ZonaAero). To support the security and safety of air transport, the government through the aviation authorities are trying to build an adequate infrastructure. A number of local governments and central government together with Angkasa Pura and Airnav Indonesia (LPPNPI) has a lot to develop the airport terminal, lengthen and widen the runway, install instrument flight (radar, DVOR, ILS etc.), and make the regulations more guarantees The good level of a security and aviation safety.</p><p>However, for things that are not desirable that may occur as aircraft accidents, it is necessary to support the system also prepared to facilitate the search for the location of the accident. Still clear in our memory how when, on May 9, 2012 a plane Sukhoi Superjet 100 has crashed in the promotion and demonstration flights. It takes more than one day to find the crash site in the area around Mount Salak located less than 100 kilometers from the capital city of Jakarta [2] (Indonesia Wikipedia).</p><p>The distance of time ranging from a loss of communication with the aircraft until the discovery of the accident scene will be very good if it can be reduced to as small as possible. This will help Basarnas and NTSC accelerate the process of investigation and to provide certainty for the families of the victims as well as those of other interested parties.</p>Location tracking system of aircraft accident would be able to find the location of a plane crash just a few moments after the breakdown of communication between the aircraft control tower / flight controller.


2020 ◽  
Vol 5 (1) ◽  
pp. 19-36
Author(s):  
Young Kil Park ◽  
Seokwoo Lee

South Korea has taken steps to achieve the Aichi Target 11 and several pieces of South Korean legislation require the government to make every effort to protect the ocean from pollution and manage conservation consistently. However, protected area coverage is recognized to be well short of target and recent assessment reports reveal that most MPAs are not managed well. The reasons for mismanagement are complex: lack of budget, lack of understanding among local residents and communities, vague jurisdictional boundaries between the regional office of the central government and the local governments, shortage of experts, etc. Therefore, the immediate and primary task for the government is to establish more effective management systems rather than increase the number and areas of the MPAs.


Subject Implications of the proposal to abolish the Senate. Significance President Mohamed Ould Abdelaziz proposed abolishing the Senate in early May. The government lacks the two-thirds majority to implement a ministerial plan to scrap presidential term limits that would allow Abdelaziz to run for a third elected term in 2019. Although Abdelaziz promises to balance abolishing the Senate with creating new regional councils, his proposals sparked street protests. They also threaten to derail government efforts to initiate a broad dialogue with opposition groups that have hitherto boycotted constitutional politics. Impacts Abolishing the Senate would weaken democratic culture. It would also antagonise black citizens because it would entrench a regime that many feel is not interested in tackling discrimination. Western partners might reduce certain types of aid, particularly budget support for central government. Abdelaziz would try to offset any Western aid cuts by seeking more support from Gulf monarchies.


Author(s):  
Febri Yuliani

The peat phenomenon that occurs in Riau Province negatively impacts the environmental conditions resulting from the management and utilization of peat ecosystem areas that are out of control and irresponsible. For example, forest fires and land that occurred have an impact of smoke haze that hit Riau and Sumatra region. This study aims to analyze the Effectiveness of Peat Restoration in Riau Province. This research is done by using qualitative method. The peatland restoration program that has been established in several districts in Riau Province is also influenced by several factors that influence the implementation process, including the following: (1) Conceptualization of Peatland Restoration Program. Since the restoration program has been rolled out, there are still many parties who do not understand what peatland restoration is. This caused inequality in the implementation of the restoration program. So far, the community considers restoration of peatlands to the extent of government tasks, and for local governments the restoration program is only a pilot project of the central government. In fact, it is wrong, therefore the conceptualization of this restoration must be clear and submitted continuously to the government apparatus, stakeholders and the community. (2) Implementing Institutional Preparedness The readiness of the implementing agency in this case is whether the institutions involved in this peat land restoration program are ready to implement with all the preparations in the form of activity designs, socialization to be performed, supporting funding, and how to respond to society. (3) The Encouragement of Good Local and Formal Figures at Provincial, District, District and Village Levels. In implementing peatland restoration programs, encouragement or support of parties other than those of the relevant official are indispensable, both formal and informal. The conclusions of this study indicate that overall government efforts to implement peat restoration have not been too effective. Some districts have successfully restored their peatlands but in some districts peat restoration has not been an important agenda in the formulation and implementation of policies in the district


2021 ◽  
Vol 3 (1) ◽  
pp. 112-125
Author(s):  
Abasilim Angela Nneka ◽  
Okhankhuele Omonigho Tonia

Background: The work is anchored on community development theory and decentralization process which emphasize both a holistic approach to development and transfer of power, functions, competencies, and means from the central government to the regional and local governments at the grassroots.Objective: The study assessed the Anambra State Government’s Grassroots Development Scheme for economic empowerment of community dwellers, in all the local governments of Anambra state, in Southeastern Nigeria. This was with the view to determine the extent of involvement of all the communities in the Government’s Grassroots Development Scheme and the commitment of the people to the purpose for which the development scheme was initiated. Method: The primary source of data was used for the study. The population was made up of all the indigenes of Anambra State. The total number of respondents selected for the study is 975. Data collected were analyzed using descriptive and inferential statistics.Result: The result showed that all the communities were involved in the grassroots development scheme of the Government of Anambra state (χ2=698.211, df =4, p=0.00). The research findings also showed that the communities were committed to the purpose for which the grassroots scheme was initiated (r=0.747, p=0.00). Conclusion: The study, therefore, concludes that all the communities in Anambra State were included in the grassroots development scheme of Anambra State and that the people of Anambra State were committed to the scheme as they embarked on and completed different development projects in the state


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