Narrowing Vertical Fiscal Imbalances in Four European Countries

Author/Editor: Izabela Karpowicz
Publication Date: March 01, 2012
Electronic Access: Free Full text (PDF file size is 597KB).
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: This paper describes the institutional changes that have induced a decline in the vertical fiscal imbalance (VFI) - defined as the share of sub-national own spending not financed through own revenues - in four European countries: Belgium, Italy, Norway, and Spain. The decline in VFI was achieved through progressive devolution of revenues to sub-national governments in Belgium, Italy, and Spain, while re-centralization of health sector expenditures was the cause of the decline in the VFI in Norway.
Series: Working Paper No. 12/91
Subject(s): Current account balances | Government expenditures | Intergovernmental fiscal relations

Author's Keyword(s): Federalism | decentralization | fiscal balance | vertical fiscal imbalance | local governments.
Publication Date: March 01, 2012
ISBN/ISSN: 9781475502664/1018-5941 Format: Paper
Stock No: WPIEA2012091 Pages: 22
US$18.00 (Academic Rate:
US$18.00 )
Please address any questions about this title to