Frameworks for central–local government relations and fiscal sustainability

Morgan, Peter J.; Trinh, Long Q.

doi:10.4337/9781786436870.00008

Cited by 6 publications

(5 citation statements)

References 23 publications

(41 reference statements)

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“…Given their expenditure responsibilities, ULBs are quite dependent on higher tiers of government. As pointed by Morgan and Trinh (2016), the share of intergovernmental transfers in local revenues was 90 per cent for India, while subnational expenditures accounted for 66 per cent when all levels of government were considered. Given this, the central government in India, during the pandemic, could not devolve the promised share of the Goods & Services Tax (GST) to the states, given its own fiscal stress.…”

Section: Introductionmentioning

confidence: 89%

Determinants of Own Revenues in Urban Local Bodies: Evidence from an Indian State

Sridhar

Ravi

2022

Environment and Urbanization ASIA

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Our objective in this article is to understand the determinants of sustainable (own source) revenues of cities and empirically estimate it in the context of an econometric model. This article makes an attempt to understand the determinants of own revenues for ULBs in India, taking the case of a prominent state, Karnataka. We empirically examine the determinants of own source revenues, controlling for endogeneity of several variables, using valuable data for cities in Karnataka, a representative Indian state. We find that higher city per capita incomes and effective literacy rates lead to a large tax base for the city economy. Road length has a positive effect on the city’s tax base, presumably as it leads to accessing jobs easily and increased economic activity, which also gives the public more confidence and motivation to pay taxes. Per capita grants lead to higher own source revenues for the city. The policy implications are to educate the workforce in the cities better, and invest in roads, rather than viewing them as expenditure.

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Section: Introductionmentioning

confidence: 89%

Determinants of Own Revenues in Urban Local Bodies: Evidence from an Indian State

Sridhar

Ravi

2022

Environment and Urbanization ASIA

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“…The legal framework of local government in different countries has many variations. Each variant has consequences in its implementation (Morgan & Trinh, 2017). The legal framework of multilevel governance cannot be separated from the political system adopted by a country.…”

Section: Planning Becomes Part Of the Local Governance Cyclementioning

confidence: 99%

“…Decentralization, especially in economic development in Asian countries, has encountered various obstacles, so the benefits of the process have not been felt. These barriers include legal frameworks for local governments, improperly designed and implemented budget systems, weak fiscal management capacity, underdeveloped financial information management systems, strong central government influence on local governments, and problematic local accountability (Morgan & Trinh, 2017).…”

Section: Shape Of Controlmentioning

confidence: 99%

Central-Local Government Relations in Regional Planning and Budgeting in Indonesia: Between Autonomy and Control

Fatimah,

Haryanto,

Dwi Retnandari

2024

pgr

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This article analyzes the relationship between central and local governments in regional planning and budgeting policies, while exploring the direction of central government control over regions through regional planning and budgeting policies. The issue of relations between central and regional governments in regional planning and budgeting is finding the right balance between autonomy and control. The research methods used are regulatory content analysis and interviews with policymakers. The results showed that the central government uses planning and budgeting to control the implementation of local government affairs and functions through guidance, detection, coercion, and evaluation of existing regulations. These findings fill the discussion gap regarding central government control of regional governments not only through guidance and supervision but through planning and budgeting policies. This study provides insight into the forms of central government control over regional governments, contributing to the trend of central and regional government relations. The practical benefit of this research is as input in improving regional planning and budgeting system policies for the government.

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“…Additionally, given corruption's detrimental influence on democracy, FG places special priority on exposing and reducing illegal and unethical behaviour in economic and financial policymaking (European Commission, 2008). In support of the development of sound FG as a tool for fostering better coordination among the various government layers, particularly in those highly decentralized countries, it has recently been asserted that good FG with independent fiscal institutions is the corner stone of efficient fiscal performance, promises fiscal responsibility and ensure fiscal sustainability (Debrun & Kinda, 2017;Morgan & Trinh, 2017).…”

Section: The Concept Of Fiscal Governance and Performancementioning

confidence: 99%

The effects of fiscal governance on fiscal performance in Sub‐Saharan Africa

et al. 2020

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Fiscal governance implemented around the globe offer useful information on the potential viable reasons for its increasing dependence and their implication for fiscal performance. This paper investigates the effects of fiscal governance in explaining the fiscal performance of countries in Africa. The paper uses a panel data of 43 countries from worldwide databases spanning from 1985 to 2011. The random effects model approach is used to analyse the data based on the diagnostic tests. Additionally, the panel corrected standard errors and Hausmann and Taylor estimation models are used to test the robustness of our results to further correct for possible errors and endogeneity in the regressors.The empirical analysis shows that fiscal policy rules and institutions have statistically significant effect on fiscal performance. The results from all the methods indicate higher coefficients of the expenditure rule relative to the other rules. This trend suggests the suitability of the adoption of the expenditure rule within the Sub-Saharan African environment. This could be partly explained by the fact that, the restrictions placed on expenditures with the aim of controlling excessive spending behaviours of fiscal authorities have been very successful in influencing fiscal deficits in Sub-Saharan Africa. This study contributes to the literature on the implication of the adoption of fiscal governance in African countries. The policy message to stakeholders is that, fiscal governance should be further strengthened to improve fiscal performance.

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Frameworks for central–local government relations and fiscal sustainability

Cited by 6 publications

References 23 publications

Determinants of Own Revenues in Urban Local Bodies: Evidence from an Indian State

Determinants of Own Revenues in Urban Local Bodies: Evidence from an Indian State

Central-Local Government Relations in Regional Planning and Budgeting in Indonesia: Between Autonomy and Control

The effects of fiscal governance on fiscal performance in Sub‐Saharan Africa

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