Grants systems in OECD countries: trends and some policy issues Experts meeting on “General Grants Vs. Earmarked Grants: Theory and practice” Thursday.

Slides:



Advertisements
Similar presentations
Fiscal Policy to Fine-Tune the Economy
Advertisements

Participants Fiscal relations between levels of government are a high priority on the political agenda of most OECD and non OECD countries. Sub-central.
Earmarked Grants and Accountability in Government Richard Bird and Michael Smart University of Toronto Copenhagen, September 2009.
Fiscal Monitoring | June 2005 TEPAV | EPRI Ankara, 14 July 2005.
Module 30: Long-run Implications of Fiscal Policy:
Introduction to Macroeconomics
Equalization of Local Governments’ Financial Capacity Emergency presentation prepared for the Prague Meeting of „Fiscal Decentralisation in South Caucasus.
Intergovernmental transfers Taxonomy, objectives and results.
Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Chapter 15 Finance and Fiscal Policy for Development.
Avoiding Budget Catastrophe Len Burman Syracuse University and NBER Central New York Council for the Social Studies October 4, 2011.
1 Tax Assignment and Tax Autonomy in OECD Countries Barcelona, May 30, 2006 Hansjörg Blöchliger OECD Fiscal Relations Network.
Tax Policy Fiscal Context and Economic Concepts Molly Sherlock Washington & Lee University January 23, 2015.
Fiscal Policy and Economic Growth: Lessons for Eastern Europe and Central Asia.
Tax autonomy and decentralisation in OECD countries. Network on Fiscal relations across levels of Government José Maria Piñero Campos OECD Fiscal Federalism.
Fiscal Policy. The Government Budget Constraint The Arithmetic of Deficits and Debt –The budget deficit in year t equals: is the government debt at.
Macroeconomic Framework and Fiscal Policy Sanjeev Gupta, Fiscal Affairs Department IMF.
The Economy of Jordan: Problems and Solutions Presented by Dr. Ohan Balian May 03, 2010 Amman.
OECD/EU PROJECT ON TAXATION, FINANCIAL INCENTIVES AND RETIREMENT SAVINGS Pablo Antolin OECD DAF/FIN Pension Unit.
Budget, debt and economic policies. What are the main sources of income and expenditures for the goverment in Canada? Sources of income: -Taxes (individual.
AD and AS equilibrium Equilibrium in both markets P Y AD AS Y Potential.
FISCAL FEDERALISM TUĞBA KARAL ESRA YAZAR ELİF KESKİN
Fiscal Policy Frederick University Fiscal policy A system of goals, tools and instruments to affect GDP and employment Subject – the Treasury (the.
SOCIAL DIMENSION OF THE ECONOMIC AND MONETARY UNION MINIMUM UNEMPLOYMENT ALLOWANCE MANUEL CALDEIRA CABRAL | UNIVERSITY OF MINHO EUROPEAN PARLIAMENT, BRUSSELS,
Carlo Cottarelli Director, Fiscal Affairs Department September 2011.
Zero Draft September 1, 2009 Conditional VS. Unconditional Grants: The Case of Developing Countries Roy Bahl Georgia State University Workshop on Intergovernmental.
FIJI’s PUBLIC DEBT Mandate to audit Public Debt Constitution Audit Act Finance Management Act 2004 Accounts and Records Borrowing Fund Account-St. of Receipts.
Fiscal equalisation in a cross-country perspective: policy issues Hansjörg Blöchliger Head, OECD Fiscal Federalism Network Berlin, 27 June
THE ECONOMIC EFFECTS OF PUBLIC SECTOR BORROWING Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
1 Institutional Arrangements & Sub National Finance in OECD Countries Visit of Mexican Legislators On Fiscal Policy and Public Finance OECD Headquarters,
Why is Government Debt in Japan so Great? Group 1 Wisnu Widiyantoro, Chris Wang.
Government budget Budget deficits and debt 1.  Recall, when we talked about national savings:  T – G is not a budget surplus  Because it is missing.
The Role of Government in a Market Economy. 1. Provide a legal system Make and enforce laws and to protect private property rights. Make and enforce laws.
Budgetary Deficit and Public Debt Public Economics Filip Hrůza.
Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. CHAPTER 11 Fiscal Policy and Automatic Stabilizers: What Managers Need.
Discussant Comments on “Revisiting Economic Growth in Colombia: A Microeconomic Perspective” Ben Clements International Monetary Fund IADB Project on Competitiveness.
1 State grant systems with a special focus on Hungary Council of Europe Workshop Belgrade, 1 November, 2006 Gábor Péteri,
Section C: Part 2 Government policies to deal with the macroeconomic objectives Chapter 37: Economic policy and policy instruments.
Econ 102 Fall Fiscal Policy 1.Discretionary fiscal policy- 2. Automatic stabilizers.
INTERGOVERNME NTAL FISCAL TRANSFERS ROY BAHL Regents Professor of Economics, Emeritus Georgia State University September, 2015 Manila External Support.
Own source revenues of local governments: international practices Olaf Merk (OECD, Regional Development Division) Fiscal Management of Local Administrations-Conference,
In the Name of God Original Slides based on Thomas Bossert, Ph.D. Harvard School of Public Health.
EQUALIZATION IN THE INTERGOVERNMEN TAL TRANSFER SYSTEM ROY BAHL Regents Professor of Economics, Emeritus Georgia State University September, 2015 Manila.
A FRAMEWORK FOR ASSESSING FISCAL VULNERABILITY Outgrowth of Fund work on fiscal transparency Integral part of a new financial architecture Motivated.
Government at a Glance Key Challenges for Government Reassessing the Role of Government Transparency and Accountability Building the Right Capacities The.
1 ST APG FORUM ON LOCAL FINANCE MANAGEMENT 7-8 May 2015, Lombok, Republic of Indonesia Ensuring fiscal sustainability of SNGs Camila Vammalle Economist/Policy.
Financial Crises and Fiscal Consolidation: The Challenges for Sustainable Social Expenditures in the Context of Demographic Change Follow-up to the 16.
The Government Budget Government Expenditures Less Government Revenues = Budget Surplus or Deficit* * Surplus if positive, deficit if negative +/- Δ in.
7 THE GOVERNMENT SECTOR Macroeconomics Curtis, Irvine © 2013.
The Economic Challenges of Ageing - across EU countries - Anda Patarau European Commission Directorate General for Economic and Financial Affairs Fiscal.
Lecture outline What is public debt? Burden of public debt Public debt management Learning materials for the course.
1 ST APG FORUM ON LOCAL FINANCE MANAGEMENT 7-8 May 2015, Lombok, Republic of Indonesia Camila Vammalle Economist/Policy Analyst OECD, Public Budgeting.
Current Fiscal Policy and Expenditure Management in Korea
Challenges for the Caribbean: Low Growth and High Debt
Budget Vote/Strategic Plan Presentation
Presentation to the Portfolio Committee on Finance by IDASA
Conference on Public Expenditure Reform
Where your money goes Chapter 10.2 & 10.3.
Challenges of Budget Management in Decentralization Budget Management and Financial Accountability Course Dana Weist Lead Public Sector Specialist,
The 2009 MTBPS: Managing a fiscal calamity
Pre-budget Consultations
Government Taxing and Spending
Messages from the OECD’s Fiscal Network
Long-Run Implications of Fiscal Policy and Monetary Policy : Deficits and the Public Debt Lesson 33 Sections 30, 31.
Government Debt in Japan
Terminology (Budget) Deficit – spending more money in a year than is taken in (National) Debt – the accumulation of yearly deficits plus interest (Budget)
Intergovernmental Transfers: Theory and Practice
Fiscal Sustainability
RECENT TRENDS AND CHALLENGES OF LOCAL FINANCE MANAGEMENT
FINANCIAL AND FISCAL COMMISSION – Budget Analysis Unit
The use of revenues from carbon pricing by Melanie Marten and Kurt Van Dender Global NDC Conference.
Presentation transcript:

Grants systems in OECD countries: trends and some policy issues Experts meeting on “General Grants Vs. Earmarked Grants: Theory and practice” Thursday September 17 th, 2009 Camila Vammalle, Hansjörg Bloechliger OECD 1

Share of transfers in total government expenditure (2005) 2 Source: National Accounts

Change in the share of transfers in government expenditure ( ) 3 Source: National Accounts

Change in SCG expenditure to total government expenditure ratio ( ) 4 Source: National Accounts

Change in SCG tax revenues on total government tax revenues ( ) 5 Source: National Accounts

Composition of Grants (2006) 6 Note: the first line corresponds to state averages, the second line to local averages. Source: OECD Fiscal Decentralisation Database

Change in the composition of grants ( ) 7 Note: the first line corresponds to state averages, the second line to local averages. Source: OECD Fiscal Decentralisation Database

Some policy issues (1/4) Grants have an equalisation role Equalisation grants represent: 2.3% of GDP 4.8% of total government expenditure 55% of total intergovernmental grants 8

Some policy issues (2/4) Grants may reduce externalities –Spending or tax –Horizontal or vertical –Matching grants –Are these externalities overestimated? 9

Some policy issues (3/4) Earmarked grants may be used to fund specific policies –Such as: risk sharing, experimentation, co-funding, addressing exceptional situations e.g.: Share of grants to SCGs in national stimulus packages: 10

Some policy issues (4/4) But grants may have unintended side effects –Reducing SCG tax effort –Putting pressure on spending, deficits and debts Thus need a skilful grant design and combining grants with complementary instruments 11

Thank you! 12