How Effective Is Fiscal Decentralization for Inequality Reduction in Developing Countries?

The relationship between fiscal decentralization and vertical inequality has long received attention by fiscal federalism theorists. However, horizontal inequality has been largely overlooked. This study will present a novel empirical examination of the relationship between fiscal decentralization, vertical inequality, and horizontal inequality. Specifically, it will focus on how institutional quality and military expenditure affect the fiscal decentralization–inequality nexus across 33 developing countries in the period 1990–2014. Findings indicate that varieties of fiscal authority have a significant effect on distribution of income and ethnic inequality. This depends on the level of institutions and defense spending achieved by these developing countries.

Determinants of Tax Compliance Behaviour among Rental Income Earners in Pokhara

Rental tax is an important source of revenue for local government units. After Nepal adopted fiscal federalism, concerns have been shown by policymakers as well as academicians on the fiscal sustainability of the local government units. In this context, this study attempts to explore tax compliance behaviour among rental income owners in Pokhara. The study is based on a survey of 196 households located in wards 9, 11 and 17 of Pokhara Metropolitan City. The wards represent commercial, semi-urban, and densely populated areas of the city respectively. The required data were gathered employing a self-administered questionnaire comprising Likert scales to measure tax awareness, attitude towards tax, cost of non-compliance, peer influence for compliance, government incentives, and tax compliance behavior of the rental income earner. The data collected were analyzed employing ANOVA, correlation and multiple regression. The research revealed a positive relationship between tax awareness, attitude towards tax, peer influence, and government incentives with tax compliances. The study findings depict that the taxpayers’ awareness and perception towards tax are important variables that affect the compliance behavior of rental taxpayers. Moreover, the results reveal that the rental income earner in Pokhara does not comply with the tax rules due to the lower cost of non-compliance as negative relationship established was found between tax compliance and the cost of non-compliance. Metropolitan tax authority needs to focus on awareness and government incentives rather than the cost of non-compliance for better adherence to tax rules among rental taxpayers.

Decentralisation of Public Enterprises in federal countries

To bring concepts and knowledge to bear more effectively on policy analysis and programme design, a framework for analysis is needed that focuses on alternatives for organising and financing the State Owned Enterprises (SOEs). Whether the motivating force behind organisation of SOEs is political or economic, a developing country situation demands that the strategy be looked at from the perspective of the provision of the people’s needs. The paper looks at the forms of SOEs and the relevance of fiscal federalism in this context. Past experience has some lessons and a flawed policy can have unwelcome consequences. Keeping in view the different initial conditions, strategies need to be devised for organisation of SOEs.

Nigeria court decision will alter fiscal federalism

Significance The case is set to appear before the Supreme Court. If the earlier high court decision is upheld, it would have substantial political and economic implications for the country, especially for how businesses deal with taxation. Impacts Compliance costs for foreign businesses and businesses working across state borders will increase if states collect VAT. States will increasingly challenge the federal government in fiscal matters. The impact on revenue allocation on states will benefit southern over northern Nigeria, deepening regional tensions.

Fiscal Federalism as an Integral Part of Ukraine’s Globalization Integration

The relevance of the problem under study is due to the civilizational necessity of globalization of Ukraine's entry into the European and world community with further reforming the system of public administration in the financial sector. The purpose of the article is based on the study of modern world experience and consequences of fiscal federalisation as a phenomenon, and analysis of the current reform situation in Ukraine. The main method is comparative, which allowed to compare different state legal systems in order to identify similarities or differences between them. The article analyses the policy and experience of fiscal federalism in Ukraine and other countries. The materials of the article can be useful to all who study federalism.