Why Focus on Spending Needs Factors? The Political Economy of Fiscal Transfer Reforms in Mexico

Author/Editor:

Ehtisham Ahmad ; Mercedes Garcia-Escribano ; José Antonio González Anaya ; Ernesto Revilla ; Giorgio Brosio ; Ben Lockwood

Publication Date:

October 1, 2007

Electronic Access:

Free Full Text (PDF file size is 425 KB).Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

An equalization system ensures that subnational governments can provide similar level of public services at a comparable level of own tax-effort. This paper focuses on the importance of spending needs factors in the design of equalization transfers as well as special purpose transfers-and the role that this could have in setting the agenda for better accountability for recipient governments, illustrating both design and implementation questions with examples from Mexico. The paper also takes into account the difficult political economy constraints to reforming any system of transfers.

Series:

Working Paper No. 07/252

Subject:

English

Publication Date:

October 1, 2007

ISBN/ISSN:

9781451868159/1018-5941

Stock No:

WPIEA2007252

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

28

Please address any questions about this title to publications@imf.org