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Fiscal Imbalance
Fiscal imbalance is a mismatch in the revenue powers and expenditure responsibilities of a government. Fiscal imbalances as differences in net fiscal benefits A fiscal imbalance emerges when sub-national governments have different abilities to raise funds from their tax bases and to provide services. This creates differences in ‘net fiscal benefits’, which are a combination of levels of taxation and public services. It is these NFBs which are the main cause of horizontal fiscal disparities that in turn generate the need for equalization grants. Prominent among the objectives commonly attributed to intergovernmental fiscal transfers is ‘equalization’ of fiscal capacities or resolution of fiscal imbalances. Thus, the transfer system can promote efficiency in the public sector and can level the field for intergovernmental competition. The discussion of fiscal imbalance and equalisation was of particular importance in the drafting of the new Iraqi constitution. It was a stick ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Constitution Of Iraq
The Constitution of the Republic of Iraq ( Kurdish: دەستووری عێراق) is the fundamental law of Iraq. The first constitution came into force in 1925. The current constitution was adopted on September 18, 2005 by the Transitional National Assembly of Iraq, and confirmed by constitutional referendum, held on October 15, 2005. It was published on December 28, 2005 in the '' Official Gazette of Iraq'' (No. 4012), in Arabic original, and thus came into force. An official translation into English for international use was produced in cooperation between Iraqi state authorities and the United Nations' Office for Constitutional Support. Since 2006, several proposals for adoption of various constitutional amendments were initiated. The Kurdish language is official at state level. History Iraq's first constitution, which established a constitutional monarchy, entered into force under the auspices of a British military occupation in 1925 and remained in effect until the 1958 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fiscal Federalism
As a subfield of public economics, fiscal federalism is concerned with "understanding which functions and instruments are best centralized and which are best placed in the sphere of decentralized levels of government" (Oates, 1999). In other words, it is the study of how competencies (expenditure side) and fiscal instruments (revenue side) are allocated across different (vertical) layers of the administration. An important part of its subject matter is the system of transfer payments or grants by which a central government shares its revenues with lower levels of government. Federal governments use this power to enforce national rules and standards. There are two primary types of transfers, conditional and unconditional. A conditional transfer from a federal body to a province, or other territory, involves a certain set of conditions. If the lower level of government is to receive this type of transfer, it must agree to the spending instructions of the federal government. An exam ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Equalization Payments
Equalization payments are cash payments made in some federal systems of government from the federal government to subnational governments with the objective of offsetting differences in available revenue or in the cost of providing services. Many federations use fiscal equalisation to reduce the inequalities in the fiscal capacities of sub-national governments arising from the differences in their geography, demography, natural endowments and economies. The level of equalisation sought can vary, however. The payments are generally calculated based on the magnitude of the subnational "fiscal gap": essentially the difference between fiscal need and fiscal capacity. Fiscal capacity and fiscal need are not equivalent to measures of fiscal revenue and expenditure, as making them so would induce perverse incentives to subnational governments to reduce fiscal effort. Australia Australia introduced a formal system of horizontal fiscal equalisation (HFE) in 1933 to compensate states/terri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cyclical Asymmetry
Cyclical asymmetry is an economic term that describes any large imbalance in economic factors occurring for purely-cyclical reactions by a market or nation. That may include employment rates, debt retention, interest rates, bond strengths, or stock market imbalances. Types There are two main types of cyclical asymmetry: fiscal and economic. Fiscal cyclical asymmetry Fiscal cyclical asymmetry is based on national or international changes to fiscal policy as a result of cyclical intervention in money markets or currency exchanges.Timo Teräsvirta. Modelling Nonlinear Economic Relationships Published 1993 Oxford University Press. A simple example is the reaction of the US Federal Reserve to raise interest rates when the dollar performs too well against other currencies such as the euro and the yen. Since currency exchanges are often predilated on the results of economic changes such as quarterly profit results, Federal Reserve must be cautious not to overreact or such fiscal chang ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fiscal Imbalance In Australia
The fiscal imbalance in Australia is the disparity between the revenue generation ability of the three levels of governments in Australia relative to their spending obligations; but in Australia the term is commonly used to refer more specifically to the vertical fiscal imbalance, the discrepancy between the federal government's extensive capacity to raise revenue and the responsibility of the States to provide most public services, such as physical infrastructure, health care, education etc., despite having only limited capacity to raise their own revenue. In Australia, vertical fiscal imbalance is addressed by the transfer of funds as grants from the federal government to the states and territories. Vertical fiscal imbalance Vertical fiscal imbalance in Australia is largely the product of the Commonwealth's takeover of income taxes in 1942, during World War II, and rulings of the High Court of Australia that made various state taxes unconstitutional under the Australian Consti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fiscal Imbalance In Canada
Fiscal imbalance (French, ''déséquilibre fiscal'') is the term used in Canada to describe a monetary imbalance between the Canadian federal government and the provincial governments. According to the fiscal imbalance theory, the federal government achieved an important surplus by cutting its contributions towards provinces, leaving provinces with responsibilities much too expensive for their resources. The theory was further developed in the "Seguin Report", commissioned by former Parti Québécois (PQ) Premier of Quebec Bernard Landry, and completed under former Liberal Quebec Minister of Finance Yves Séguin. The federal government, run by the Liberal Party of Canada until January 2006, denied that this imbalance exists, arguing, in part, that both the federal and provincial governments have access to the same major sources of revenue and that both orders of government face significant spending pressures and limited resources. However, the Conservative Party of Canada recogni ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fiscal Imbalance In Nigeria
The economy of Nigeria is a middle-income, mixed economy and emerging market with expanding manufacturing, financial, service, communications, technology, and entertainment sectors. It is ranked as the 53rd-largest economy in the world in terms of nominal GDP, the second largest in Africa in terms of purchasing power parity, and the 27th-largest in terms of purchasing power parity. The country's re-emergent manufacturing sector became the largest on the continent in 2013, and it produces a large proportion of goods and services for the region of West Africa. Nigeria's debt-to-GDP ratio was 36.63% in 2021 according to the IMF. Although oil revenues contributed 2/3 of state revenues, oil only contributes about 9% to the GDP. Nigeria produces about 2.7% of the world's oil supply. Although the petroleum sector is important, as Nigeria's government revenues still heavily rely on this sector, it remains a small part of the country's overall economy. The largely subsistence agricu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fiscal Policy
In economics and political science, fiscal policy is the use of government revenue collection ( taxes or tax cuts) and expenditure to influence a country's economy. The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s, when the previous laissez-faire approach to economic management became unworkable. Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorised that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity. Fiscal and monetary policy are the key strategies used by a country's government and central bank to advance its economic objectives. The combination of these policies enables these authorities to target inflation and to increase employment. In modern economies, inflation is conventionally considered "healthy" in the range of 2%–3%. Add ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
