Fiscal Federalism

Where does financial responsibility lie? Emerging paradigms from a comparison between Germany and Spain

Where does financial responsibility lie? Emerging paradigms from a comparison between Germany and Spain

Abstract

Financial responsibility traces the academic and political debate of any decentralising process. This is even more so in the European context, in which taxes – exclusively set and regulated by the subnational legislator – play a marginal role in subnational financing, though in theory they are the most genuine instrument for making SNGs pay for their decisions. Against this framework, this contribution delves into a selection of case studies (i.e., Germany and Spain) testing the principle of financial responsibility from a comparative and legal perspective. The basic assumption is that the way in which the vertical fiscal gap is addressed influences the degree of financial autonomy (and hence responsibility) of subnational entities. As such, the major issue at stake is the revenue structure of the subnational level of government, with regard to the legal tools and procedures devoted to revenue-sharing, as these elements play a key-role in defining the extent to which SNGs are made financially and politically responsible for their financing.

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Posted by Alice Valdesalici in Theory, 0 comments
Rebalancing Federal Citizenship in Canada

Rebalancing Federal Citizenship in Canada

Abstract

In multinational federations, tensions around national identities, rights and entitlements, and power-sharing arrangements are endemic and never finally resolved. In Canada, simultaneous constitutional and fiscal crises in the 1990s brought into question the legitimacy of the ‘federal bargain’ at the core of the citizenship regime. The federal government’s response was to introduce a number of institutional, programmatic, fiscal and symbolic reforms that adjusted the delicate balance between national unity and the accommodation of diversity. This pragmatic political vision, replete with certain asymmetries and ambiguities, enabled Canada to rebuild and rebalance its way to its own unique shade of federalism.

 

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Posted by James Bickerton in Case Studies, 0 comments
The Pleasant Greyness of Australian Federalism

The Pleasant Greyness of Australian Federalism

Abstract

This article provides an overview of Australian federalism, describing its origins, design, features, evolution, and issues. Its central theme is the way that, in the notable absence of a ‘federal society’, a system that was decentralised in design and intent has given way to one much more centralised in practice. The issues that plague Australian federalism are the practical ones of fiscal federalism and intergovernmental relations.

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Posted by Alan Fenna in Case Studies, 0 comments
The Union Model of Indian Federalism

The Union Model of Indian Federalism

Abstract

The Founding Fathers provided India with a Union Constitution and a model of federalism, which is now distinctively know as a ‘union model of federalism’. It distinctively harmonises otherwise opposite processes of (i) centralisation-decentralisation; (ii) autonomy-integration, and unionisation- regionalisation. The degree of federalism varies from Article to Article and from one context to another. One finds a consistency in the relative degrees of centralisation and decentralisation. Powers are distributed in a manner as to promote federal nationalism and regionalism, besides being an ethnically responsive federal polity. With the introduction of Goods and Services Taxes (GST) and the National Institution for Transforming India (NITI Aayog) and growing salience of subject specific regulatory bodies, Indian federalism is gradually shifting towards a system of national governance, which I have termed ‘National federalism’. This contribution succinctly analyses these aspects of Indian federalism.

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Posted by Ajay Kumar Singh in Case Studies, 0 comments