Measuring the Role of Subnational Governments
IMF Working Papers, January 1, 1991
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- Measuring the Role of Subnational Governments
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Bibliographic details
- Authors: Jonathan Levin
- Published: January 1, 1991
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451842456.001
Measurement approach
- Only external money flows are counted when measuring subnational governments; intra-level transactions are excluded when measuring a level of government.
- All intergovernmental transactions are excluded when measuring general government.
- Administered expenditures are measured net of grants given to other governments.
- Financed expenditures are measured net of grants received.
Distinguishing functions for centralization metrics
- Control, finance, and administration should be distinguished in measuring centralization and each level’s share of general government.
- Disparate decentralization across control, finance, and administration is a key focus for assessing the structure of government responsibilities.
Vertical imbalance metrics and implications
- Vertical imbalance is measured by:
- The portion of a government’s expenditures not covered by its own resources.
- The ratio of intergovernmental grants to total government expenditures.
- Disparate decentralization of finance, control, and administration leads to vertical imbalance.
Subject coverage and keywords
- Subjects: Economic and financial statistics; Expenditure; General government spending; Government finance statistics; Public financial management (PFM); Revenue administration; Total expenditures.
- Keywords include: Africa; General government spending; general govt; government; government activity; Government finance statistics; government operation; grantor government; majority government ownership; State govt; State govt.; supranational authorities; Total expenditures; WP.