Fiscal Federalism and Equalisation Transfers : Balancing Regional Autonomy and Solidarity.

Format:

Book

Author/Creator:

Erkoreka, Mikel.

Series:

Studies in Territorial and Cultural Diversity Governance Series

Studies in Territorial and Cultural Diversity Governance Series ; v.21

Language:

English

Subjects (All):

Intergovernmental fiscal relations.

Central-local government relations.

Local finance--Law and legislation.

Local finance.

Revenue sharing--Law and legislation.

Revenue sharing.

Transfer payments--Law and legislation.

Transfer payments.

Decentralization in government--Law and legislation.

Decentralization in government.

Cultural pluralism--Political aspects.

Cultural pluralism.

Autonomy.

Global Financial Crisis, 2008-2009.

COVID-19 Pandemic, 2020-2023.

Physical Description:

1 online resource (293 pages)

Edition:

1st ed.

Place of Publication:

Boston : BRILL, 2025.

Summary:

The book analyses the challenges and risks provoked by territorial inequalities in the internal cohesion of federal and decentralised countries. It aims to serve as a reference on the present and future of fiscal equalisation systems in the field of federal studies.

Contents:

Front Cover

Half Title

Series Information

Title Page

Copyright Page

Contents

Figures and Tables

Notes on Contributors

Introduction: State Intervention and the Development of Fiscal Equalisation Systems in Federal Countries: An Historical Introduction

Part 1 Theoretical Framework of Fiscal Equalisation

Chapter 1 The Economics of Fiscal Equalisation

1 Introduction

2 Justification, Debates and Advantages of Fiscal Equalisation

2.1 Vertical Imbalances

2.2 Equity

2.3 Efficiency

2.3.1 Restoring the Fiscal Equivalence

2.3.2 Disincentive to Tax Competition

2.3.3 Slowing Down Inefficient Mobility: Congestion Costs and Economies of Scale

3 Risks and Disadvantages of Fiscal Equalisation

3.1 The Tax-Back Problem

3.2 The Flypaper Effect

4 What Can Be Equalised?

4.1 Fiscal Capacity

4.2 Expenditure Needs

5 Equalisation Degree: Full or Partial?

6 Financing Fiscal Equalisation

7 Future Challenges for Fiscal Equalisation

References

Chapter 2 Paradigms of Subnational Government Participation in Equalisation Mechanisms: A Comparative and Constitutional Outlook

2 Australia: The Prototype of a Tax-Revenue Sharing Scheme on a 'Technical Base'

3 Canada: The Paradigm of Federal-Provincial Diplomacy

4 Germany: The Prototype of a Tax-Revenue Sharing Mechanism on a 'Legislative-Assembly Base'

5 Spain: The Quasi-constitutional Institutionalisation of the Fiscal and Financial Policy Council (CPFF) as a Forum for Intergovernmental Financial Relations

6 Comparative Conclusions

Part 2 Fiscal Federalism and Equalisation in Practice: Case Studies

Chapter 3 Redistribution and Equalisation in Fiscal Federalism and the Structure of Territorial Imbalances in Argentina

1 Introduction.

2 Regional Inequalities and Territorial Imbalances in Argentina

3 Argentine Fiscal Federalism and Equalisation

3.1 Nature of the System

3.2 Brief Historical Background: From Explicit Rationality to its Abandonment, Promise of Recovery and Provisionality

4 In Search of Regional/Provincial Coefficients. Recalculation of Magnitudes

4.1 General Framing and Methodological Notes

4.2 Criteria for Selection of Indicators

4.3 Regionalisation Criteria

5 Results

6 Conclusions

Chapter 4 From Full to Partial Equalisation: The Case of Horizontal Fiscal Equalisation in Australia

2 Fiscal Federalism in Australia

2.1 Federal Revenue Powers

2.2 Federal Spending Power

3 Recognition of the Need for Fiscal Redistribution

3.1 Development of the HFE and the History of the CGC

3.2 The Institutionalisation of HFE: Method and Principles in Practice

4 Political Challenges to HFE: The 2018 Reforms

4.1 The Reform Package

4.2 Structural Challenges to HFE: Territorial Diversity and Variation in Fiscal Dependence

4.3 Fiscal Challenges to HFE: No-Worse-Off Guarantees

4.4 Future Political Challenges to the No-Worse-Off Payments: Policy Feedbacks

5 Conclusions

Chapter 5 The Political Economy of Federal Equalisation Policy in Canada

2 The Structure of the Program and Historical Landmarks

2.1 Goals of Equalisation and of Transfers

2.2 Historical Evolution

2.3 Results

2.4 Current Issues of the Equalisation and Transfer Systems

3 The Politics of Equalisation

3.1 Presentation of the Public Opinion Data

3.2 Results of the Empirical Analysis

4 Conclusions and Future Challenges

Chapter 6 The Political Economy of Federal Grants: Ethiopia's Experience

2 Overview of the Ethiopian Federation.

3 Legal Framework for Intergovernmental Fiscal Transfers

4 The Practice of Determining the Transfer Pool

5 Determination of Subsidies Formulas and Regional Shares

6 Ethno-regional Dynamics and Fiscal Transfers

7 Evolution and Reform of Subsidy Allocation Methodology after 2007

8 Grants and Regional Autonomy in Ethiopia

9 Conclusions

Chapter 7 Intergovernmental Fiscal Relations during the COVID 19 Pandemic in Germany: Was the New Fiscal Equalisation Scheme able to Hamper Financial Dislocations?

2 The Reform of Federal Inter-state Fiscal Equalisation

3 COVID-19 and Ukraine Crisis Effects on the Economic Growth Rates and the Subnational Tax Revenues

4 Horizontal Changes of State and Local Fiscal Capacities and New Fiscal Equalisation Transfer Payments

5 Unsolved Vertical Problems and New Horizontal Conflict?

6 Further Expectations for the Fight against Energy Crisis and Climate Change Policies

Chapter 8 Fiscal Federalism and Territorial Inequalities: India's Experience

1 Territorial Inequality in India

1.1 Introduction

1.2 Poverty and Inequality in India

1.3 Territorial Distribution of Public Expenditure

1.4 Economic Growth and Inequality

2 Fiscal Equalisation Program in India

2.1 Between the Centre and the States

2.2 Equalisation Between the States and the Local Bodies

3 Conclusions

Chapter 9 Confronting Territorial Inequality among South African Municipalities: Challenges to the Fiscal Equalisation System

2 South Africa's Intergovernmental Fiscal System

2.1 Provincial Own Revenue

2.2 Municipal Own Revenue

2.3 Intergovernmental Fiscal Relations

2.4 Transfers to Provinces

2.5 Transfers to Municipalities

3 Evolution of National Transfers to Municipalities.

3.1 Local Government Equitable Share - Vertical Equalisation

3.2 Local Government Equitable Share - Horizontal Equalisation

3.3 Municipal Infrastructure Grant

4 The Implementation of Pro-poor Equalisation Transfers

4.1 Local Government Equitable Share

4.2 Municipal Infrastructure Grant

5 Towards Greater Equalisation and Poverty Reduction

Chapter 10 Inter-regional Inequalities and Fiscal Equalisation in Spain

2 Structural and Cyclical Economic and Social Inequalities Among AC s

3 Welfare Spending in the AC s and the Impact of the 2008 Financial and Economic and the COVID 19 Pandemic Crises

4 The Equalisation System

4.1 General Considerations

4.2 The Spanish Equalisation System

5 Results and Shortcomings of the Equalisation System

6 Conclusions: Current State of the Regional Financing System, Inter-regional Inequalities in Spain and Future Challenges

Chapter 11 The Swiss System of Fiscal Equalisation - Balancing Cantonal Tax Autonomy and Federal Solidarity

2 The Distribution of Tax Powers in Swiss Federalism

2.1 Tax Powers of the Federation

2.2 Tax Powers of the Cantons and Communes

2.3 Tax Harmonisation

3 The Old Fiscal Equalisation System and its Shortcomings

3.1 Origins and Characteristics

3.2 Shortcomings

4 The Reform Process

4.1 Disentanglement of Powers and Competences

4.2 Rebalancing Autonomy and Solidarity

5 The Revised Fiscal Equalisation System

5.1 Resource Equalisation

5.2 Cost Compensations

5.3 Cohesion Fund and Other Temporary Instruments

6 Current Situation and Future Challenges

Subject Index

Back Cover.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9789004524514

9004524517

OCLC:

1503845246