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Author/Editor:
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Ahmad, Ehtisham ; González Anaya, José Antonio ; Brosio, Giorgio ; Garcia-Escribano, Mercedes ; Lockwood, Ben ; Revilla, Ernesto
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Publication Date:
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October 01, 2007
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Electronic Access:
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Free Full text
(PDF file size is 425KB).
Use the free
Adobe Acrobat Reader
to view this PDF file
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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
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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.
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Series:
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Working Paper No. 07/252
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Subject(s):
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Fiscal policy | Mexico | Government expenditures | Public sector | Economic reforms | Political economy
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Author's Keyword(s):
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Intergovernmental fiscal relations | tranfers |
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