IMF Working Papers

Great Recession and Fiscal Squeeze at U.S. Subnational Government Level

By Jiri Jonas

July 1, 2012

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Jiri Jonas. Great Recession and Fiscal Squeeze at U.S. Subnational Government Level, (USA: International Monetary Fund, 2012) accessed December 14, 2024
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

The paper discusses the fiscal impact of the Great Recession of 2007-08 on state and local governments in the United States. It documents the sharp decline in tax revenue and discusses how states responded to close the budget gaps in order to obey the balanced budget provisions. It highligts the procyclical nature of this policy response, provides a brief comparison with subnational policy stances in other advanced economies, and discusses some options for making subnational fiscal policy less procyclical within the framework of current rules.

Subject: Budget planning and preparation, Expenditure, Financial crises, Global financial crisis of 2008-2009, Public financial management (PFM), Revenue administration, Subnational tax, Tax collection, Taxes

Keywords: Bond yield, Budget gap, Budget planning and preparation, Country, Fiscal policy, Global financial crisis of 2008-2009, Government, Government supplier, Job statistic, Local government, Local government employment, Local government finance, Net government lending, Property tax, State budget, State government, State nominal, State tax collection, Subnational tax, Tax collection, Tax policy, Tax receipt, WP

Publication Details

  • Pages:

    40

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2012/184

  • Stock No:

    WPIEA2012184

  • ISBN:

    9781475505320

  • ISSN:

    1018-5941