IDEAS home Printed from https://ideas.repec.org/p/oec/ecoaaa/453-en.html
   My bibliography  Save this paper

Getting the Most Out of Public Sector Decentralisation in Mexico

Author

Listed:
  • Isabelle Joumard

Abstract

Enhanced autonomy of sub-national governments has spurred innovative management. Spending assignments across levels of government, however, often overlap and/or are not yet fully understood by most citizens. Sub-national governments’ accountability is further reduced by the heavy reliance on federal transfers, as opposed to own-revenues (taxes and user fees). In addition, the use of federal transfers as collateral for states' borrowing potentially undermines the role of financial markets in disciplining fiscal behaviour. Getting the most out of decentralisation would thus require a national agreement clarifying responsibilities for each level of government. Improving sub-national governments’ incentives in delivering cost-effective public services would further require improving the quality of information on actual spending and outcomes, raising the volume of their own taxes and reforming the grant systems. Decentralisation should also be more consistent with the aim of improving interregional equity in obtaining access to core public services. This Working Paper relates to the 2005 OECD Economic Survey of Mexico (www.oecd.org/eco/surveys/mexico). Optimiser l'impact de la décentralisation au Mexique L’autonomie renforcée des collectivités territoriales pour la gestion des services publics a permis le développement d’innovations intéressantes. Les responsabilités pour un certain nombre de programmes publics du gouvernement fédéral, des états et des communes se recoupent néanmoins fréquemment et/ou ne sont pas pleinement comprises par la plupart des citoyens. Le rôle prépondérant des transferts fédéraux dans le budget des collectivités territoriales, par opposition aux ressources propres issues de redevances ou d’impôts locaux, n’incite pas les collectivités territoriales à se montrer redevables envers les citoyens. L’utilisation des transferts fédéraux comme garantie pour les emprunts des états nuit à la possibilité d’une discipline budgétaire dictée par les marchés financiers. Pour optimiser l’impact de la décentralisation sur l’économie, il faudrait un accord national clarifiant les responsabilités de chacune des administrations publiques dans la gestion des programmes publics. Les incitations des collectivités territoriales à offrir des services publics répondant mieux aux besoins des citoyens devraient être aussi renforcées en améliorant la qualité des informations sur les dépenses effectives et leurs résultats, en donnant aux impôts locaux un rôle accru et en réformant le système des transferts intergouvernementaux. Il est aussi souhaitable que la décentralisation soit conçue en vue d’une plus grande équité entre les régions pour l’accès aux services publics de base. Ce Document de travail se rapporte à l'Etude économique de l'OCDE du Mexique 2005 (www.oecd.org/eco/etudes/mexique).

Suggested Citation

  • Isabelle Joumard, 2005. "Getting the Most Out of Public Sector Decentralisation in Mexico," OECD Economics Department Working Papers 453, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:453-en
    DOI: 10.1787/881825436538
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/881825436538
    Download Restriction: no

    File URL: https://libkey.io/10.1787/881825436538?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luca Gandullia, 2012. "The role of direct taxes in fiscal decentralization," DEP - series of economic working papers 6/2012, University of Genoa, Research Doctorate in Public Economics.
    2. Kendall D. Funk & Erica Owen, 2020. "Consequences of an Anti‐Corruption Experiment for Local Government Performance in Brazil," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(2), pages 444-468, March.
    3. Diane Charlton & J. Edward Taylor, 2020. "Rural school access and the agricultural transformation," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 641-654, September.
    4. Cinthya Caamal Olvera., 2007. "Oferta Laboral en México: un enfoque de variables instrumentales," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 115-154, May.
    5. Cabrera-Castellanos, Luis F. & Lozano-Cortés, René, 2008. "Descentralización y Federalismo Fiscal en México [Decentralization and Fiscal Federalism in Mexico]," MPRA Paper 10572, University Library of Munich, Germany.
    6. Brieuc Monfort, 2015. "Can Increased Public Expenditure Efficiency Contribute to the Consolidation of Public Finances in Japan?," Working Papers halshs-01548620, HAL.

    More about this item

    Keywords

    collectivités territoriales; discipline budgétaire; fiscal discipline; fiscal federalism; fiscal rules; fédéralisme financier; impôts locaux; intergovernmental grants; Mexico; Mexique; règles budgétaires; sub-national government; transferts intergouvernementaux;
    All these keywords.

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H4 - Public Economics - - Publicly Provided Goods
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:453-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/edoecfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.