## Measuring the Role of Subnational Governments

_IMF Working Papers, January 1, 1991_

## Source details

**Canonical URL:** [Measuring the Role of Subnational Governments](https://www.imf.org/en/publications/wp/issues/2016/12/30/measuring-the-role-of-subnational-governments-880)

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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

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### 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.

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/measuring-the-role-of-subnational-governments-880_