Government finance in developing countries / Richard Goode.

Format:

Book

Author/Creator:

Goode, Richard B.

Language:

English

Subjects (All):

Finance, Public--Developing countries.

Finance, Public.

Developing countries.

Physical Description:

xii, 334 pages ; 24 cm

Place of Publication:

Washington, D.C. : Brookings Institution, [1983]

Summary:

Fiscal systems throughout the world have been severely strained in recent years, as governments have assumed more responsibility for economic management. The developing counties, where needs are greatest and resources scarcest, have found their finances especially hard pressed. This book examines a range of issues in government finance that confront developing countries: the formulation and execution of national budget; the objectives, size, and effects of expenditures; the purposes and results of various ways of taxing income, wealth, consumption, exports, or natural resources; the role of foreign and domestic borrowings; and the consequences of financing by money creation. The book also relates fiscal operations to goals such as growth and development, economic stabilization, equitable distribution, and national self-reliance. The author stresses the need to take account of economic and political conditions and particularly administrative capacity when evaluating the suitability of fiscal measures in developing countries.

Contents:

Government and Other Economic Sectors 1

Government Finance and National Objectives 2

Fiscal Instruments 3

Characteristics of Developing Countries 5

2. Budgeting 9

The Multiple Purposes of Budgeting 9

Comprehensiveness 10

The Budget Document 13

Budget Policy 18

Budget Formulation 19

Budget Execution 23

Budgeting in Inflationary Times 26

Current and Capital Budgets 28

Budgeting and Planning 32

Proposals for Reform 34

Some Political Aspects of Budgeting 39

Improvements in Budgeting 40

3. Government Expenditures 44

The Nature and Objectives of Expenditures 44

Influences on Expenditures 49

The Growth of Expenditures 53

The Distribution of Benefits and the Effects of Expenditures 57

Benefit-Cost Analysis 62

4. Taxation: A General Discussion 75

The Purposes of Taxation 75

Principles of Tax Design 76

Equity 77

Shifting and Incidence 80

Taxable Capacity and Tax Effort 84

Tax Structure and the Stage of Development 88

Tax Elasticity 92

Limits to Taxation 95

5. Taxation of Income and Wealth 101

The Individual Income Tax 102

The Corporation Income Tax 110

Inflation and the Income Tax 127

The Taxation of Wealth 133

6. Taxation of Consumption 141

Consumption as a Tax Base 141

The Comprehensive Expenditure Tax 143

Import Duties and Excises 146

Sales Taxes 152

Consumption Taxes in Centrally Planned Economies 160

The Treatment of Producers Goods in Indirect Taxes 163

7. Taxation of Exports and Natural Resources 167

Export Taxes 167

Taxation of Natural Resources 180

8. Borrowing 195

Domestic Borrowing 195

Borrowing Abroad 203

9. Financing by Money Creation 212

Nature and Effects 212

Noninflationary Finance by Money Creation 215

Inflationary Finance 217

The Impact of Inflation on the Budget 221

The Protection of Tax Revenue during Inflation 225

The Consequences of Inflation 225

10. Government Finance Policies to Assist Growth and Development 230

Growth and Development as Objectives 230

Growth Strategies 231

Industrialization with Dualism 233

General Growth and Development 238

11. Fiscal Policies for Stabilization 259

Policies to Lessen Cyclical Instability 259

The Relationship between Fiscal and Monetary Policies 267

The Susceptibility of Developing Countries to Inflation 269

Stabilization Programs 272

Special Problems of Oil-Exporting Countries 278

12. Equitable Distribution and the Fiscal System 282

Interpretation of the Objective 282

Fiscal Instruments and Distribution 284

The Tradeoff between Equity and Growth 295

13. Making Policies Effective and Efficient 300

Aspirations and Accomplishments 301

Policy Formulation 303

Organization, Management, and Procedures 306

Codes and Regulations 310

Corruption 310

Technical Assistance 314.

Notes:

Includes bibliographical references and index.

ISBN:

0815731965

0815731957

OCLC:

59700805