Fiscal Decentralisation and Provision of Local Public Services in Selected EU Countries

2015 ◽  
Vol 13 (3) ◽  
pp. 595-613 ◽  
Author(s):  
Martina Halásková ◽  
Renata Halaskova

Fiscal decentralisation aims to provide own financial resources or transfers from the central government for an efficient use of the original competences by local governments. This paper deals with the role of fiscal decentralisation and its impact on local public services. Rational indicators of revenue and expenditure fiscal decentralisation and selected local government expenditure are compared by public services, including the extent of decentralisation in selected EU countries. Modelling and comparison of selected EU countries is carried out through the method of multidimensional scaling according to the similarity of local government expenditure on services of social protection, healthcare, education, and recreation and culture (as % GDP) in years 2006, 2009 and 2012.

2016 ◽  
Vol 14 (3) ◽  
pp. 379-397 ◽  
Author(s):  
Martina Halásková ◽  
Renata Halásková

Local financing in advanced countries enables local governments to assess real local priorities as well as limitations. The present paper deals with financial capabilities of local governments for the development of public services, local government expenditure and fiscal expenditure decentralization in the EU28. By use of cluster analysis, local public expenditures are assessed by selected COFOG functions, as % of total local government expenditures in years 2010-2013. The results proved the largest differences in the set of countries in local government expenditures on social protection and the smallest differences in local expenditures on recreation and cultures, housing and community amenities.


2006 ◽  
Vol 45 (1) ◽  
pp. 157-161
Author(s):  
Durre-e- Nayab

The Local Government Ordinance (LGO), formulated by the National Reconstruction Bureau (NRB) in 2000 and promulgated by provincial governments in August 2001, assigns powers, responsibilities, and service delivery functions to three levels of local governments: district, tehsil, and union. Responsibilities for the delivery of social and human development services, such as primary and basic health, education and social welfare, are delegated to the district level, whereas municipal services, such as water, sanitation and urban services are assigned to the tehsil level. The LGO does not only deal with the delivery of public services in its plan but also stresses the need for fiscal decentralisation, claiming that “Fiscal decentralisation is the heart of any devolution exercise. Without fiscal decentralisation no authority is devolved.”


2015 ◽  
Vol 13 (3) ◽  
pp. 521-535 ◽  
Author(s):  
Beata Mikusova Merickova ◽  
Juraj Nemec ◽  
Mária Svidroňová

The new approaches to the delivery of local public services include co-creation. In this paper, we focus on two local public service delivery actors: local governments and civil society. Our objective is to identify different types of co-creation in social innovations and the relevant drivers and barriers that account for the success or failure of co-creation processes at the local government level in Slovakia, focusing on the fields of welfare and the environment. The main findings of our analysis are that co-created innovations are mostly initiated by non-governmental actors, and that most local governments have neutral or even negative attitudes to co-created innovations. We provide a positive case study, in which the local government was open to co-creation, and public services were provided in an alternative way. Our study uses a qualitative approach and is based on original survey data from our own research, conducted mainly within the ‘Learning from Innovation in Public Sector Environments’ (LIPSE) research project.


2018 ◽  
Vol 1 (1) ◽  
pp. 1-9
Author(s):  
Marcus R. Maspaitella ◽  
Lillyani M. Orisu ◽  
Rahel Y. Tiwery

Regional autonomy has provided a rightful authority for local governments to set and manage their own governmental affairs. The implication derived from this regulation is that local governments have to fulfill the regions’ needs as well as to explore much more potentials owned. This can enhance the capacity of local governments that could be a useful capital in financing operational programs. This research aims to analyse the influence of region own source revenue, balance fund, and other lawful local revenues on local government expenditure of regencies and city in Papua Barat province between 2010 and 2015. Sample in this research includes six regencies and one city. Panel data regression was employed to estimate the fitted model. The result indicated that the effects of balance fund and other lawful local revenues were positive and significant, whereas the influence of region own source revenue was not significant on government expenditure of regency/city in Papua Barat.


2018 ◽  
Vol 2 (1) ◽  
pp. 21
Author(s):  
Ansharullah Tasri

One of the implementations of autonomy policy is fiscal decentralization. The State gives chance to every local government for improving its fiscal ability. Original Local Government Revenue (PAD) is fiscal potency owned local government to improve local government independence to promote welfare to society. To accelerate fiscal independence of local government equally, the central government sends transfer funds in the form of General Allocation Funds (DAU) which aims to comply local government expenditure that has not fulfilled. However, problems faced is local government expenditure management still much more affected by DAU rather than PAD. It indicates that local government still depends on central government to comply expenditure called flypaper effect. This research aims to analyze the effect of PAD and DAU on local government expenditure by identifying whether occurs flypaper on provincial government in Indonesia. The method used in this research is analysis regression of panel data with Generalized Least Square (GLS). Data used is panel data from 34 provinces in Indonesia between 2008-2017. Based on results estimation, PAD and DAU positively and significantly affect local government expenditure. However, the DAU more affects local government expenditure compared with PAD. This exhibits that flypaper effect phenomenon occurred on provincial government in Indonesia which local government expenditure response more affected by DAU than PAD. It is happening due to the provincial government still relies on central government to comply its expenditure illustrated with high DAU transfers. This research concludes that decentralization policy in Indonesia is not effective yet. Thus, the government needs to adjust decentralization policy in order to improve regional fiscal independence.


2018 ◽  
Vol 2 (1) ◽  
pp. 20
Author(s):  
Ansharullah Tasri

One of the implementations of autonomy policy is fiscal decentralization. The State gives chance to every local government for improving its fiscal ability. Original Local Government Revenue (PAD) is fiscal potency owned local government to improve local government independence to promote welfare to society. To accelerate fiscal independence of local government equally, the central government sends transfer funds in the form of General Allocation Funds (DAU) which aims to comply local government expenditure that has not fulfilled. However, problems faced is local government expenditure management still much more affected by DAU rather than PAD. It indicates that local government still depends on central government to comply expenditure called flypaper effect. This research aims to analyze the effect of PAD and DAU on local government expenditure by identifying whether occurs flypaper on provincial government in Indonesia. The method used in this research is analysis regression of panel data with Generalized Least Square (GLS). Data used is panel data from 34 provinces in Indonesia between 2008-2017. Based on results estimation, PAD and DAU positively and significantly affect local government expenditure. However, the DAU more affects local government expenditure compared with PAD. This exhibits that flypaper effect phenomenon occurred on provincial government in Indonesia which local government expenditure response more affected by DAU than PAD. It is happening due to the provincial government still relies on central government to comply its expenditure illustrated with high DAU transfers. This research concludes that decentralization policy in Indonesia is not effective yet. Thus, the government needs to adjust decentralization policy in order to improve regional fiscal independence.


2012 ◽  
Vol 2 (3) ◽  
pp. 55 ◽  
Author(s):  
Sujarwoto Sujarwoto

This study contributes to the existing decentralization literature by examining the association between political decentralization and local public service performance in the context of decentralization reform in Indonesia. The hypothesis is that improve local public service performance within political decentralization is associated with effective local political institutions and accountable local government. The hypothesis is tested using Indonesian Governance Decentralization Survey 2006 which consists of 8,320 households living in 120 local governments. Local government public service performance is measured by perceived improvement of three basic public services: basic education, health and general administration services. Multilevel analyses are applied to account for the nested structure of perceived public service performance within decentralized local government. The results show that effective local political institutions, better informed citizen and transparency, citizen political participation via community programs, and the presence of social group in community are significant for improving local public service performance. These results reveal after we control the model with household and local government socio-demographic determinants. The empirical findings suggest that improved local public services performance requires well functioning local political institutions, better informed citizens and transparent local government, and effective channels for political participation. 


2017 ◽  
Vol 35 (4) ◽  
pp. 368-379 ◽  
Author(s):  
Asle A. Gauteplass ◽  
Arnt O. Hopland

Purpose The purpose of this paper is to study how the central government can use well-known game-theoretical concepts in order to stimulate provision of local public facilities. Design/methodology/approach The authors use the classical adverse selection framework to discuss how the central government can use investment transfers as efficiently as possible to stimulate increased provision of local public facilities. Findings The benefits of local public facilities, such as kindergartens, schools, and primary healthcare institutions are greater than what each local government takes into account. Consequently, the central government, which maximizes social welfare in total, wants more local public facilities than the individual local government find optimal to supply. The central government thus would want to stimulate additional provision of local public facilities using contracts where local governments receive a transfer as compensation for increasing their supply. Since local governments differ regarding their efficiency in supplying facilities, the required amount of facilities and the corresponding transfer size should be allowed to vary across local governments. Originality/value Almost all countries are organized with multiple tiers of government, and local governments are important providers of many important welfare services. After labor, facilities are probably the second most important input in production of local public services. This paper offers insights into how the central government can efficiently stimulate the production of local public facilities.


Author(s):  
Stephen King

This chapter describes a journey through e-enabled local public services. We start with the familiar local government Web site and contact centre channels to the citizen. We then move on to stage 2; how leading local governments are now mining the flow of data through these channels to develop “insight” into citizens’ service use and future needs. Next, we explore stage 3 and the role of performance measurement systems and virtual online communities in raising the citizen’s voice. Finally, stage 4 combines the parallel journeys of e-government and e-citizen and describes a co-produced future that may at last put the citizen centre-stage in the design and delivery of local public services. We use innovation theory to identify characteristics of an innovative local government and identify a need to extend this theory to accommodate the key themes of citizen-centric e-government: transparency, trust, rights, and obligations.


1976 ◽  
Vol 4 (3) ◽  
pp. 295-306 ◽  
Author(s):  
D.A.L. Auld

This paper examines the explanatory power of linear and nonlinear expenditure functions in assessing conditional grants to local governments in Ontario, Canada. The results are similar in both cases with a slightly better performance from the linear model. The results also suggest that such grants had a positive impact on local spending.


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