IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/178.html
   My bibliography  Save this paper

The Federal Approach to FiscalDecentralisation: Conceptual Contours for Policy Makers

Author

Listed:
  • Sharma, Chanchal Kumar

Abstract

Chanchal Kumar Sharma,in his paper demonstrates that in order for fiscal decentralisation to be effective, it must be approached federally. A federal approach is not a decentralised approach but a dynamically balanced approach; one that constantly keeps on adjusting the contrasting forces of centralisation and decentralisation to create a system that can ensure good governance in accordance with the rapidly changing global and local scenario. According to the author, the good governance of the present time has to be federally flexible and dynamically decentralised and institutions of fiscal federalism are crucial for achieving such a dynamic equilibrium. Fiscal decentralisation cannot be detached from the broader principles of fiscal federalism if it is to be successful, irrespective of the fact of whether it is being carried out in a federal or non-federal country. He argues that too much decentralisation or an overly strong central federal government precludes the survival of a constitutional federal state.

Suggested Citation

  • Sharma, Chanchal Kumar, 2003. "The Federal Approach to FiscalDecentralisation: Conceptual Contours for Policy Makers," MPRA Paper 178, University Library of Munich, Germany, revised May 2005.
    • Handle: RePEc:pra:mprapa:178
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/178/1/MPRA_paper_178.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shah, Anwar, 2004. "Fiscal decentralization in developing and transition economies: progress, problems, and the promise," Policy Research Working Paper Series 3282, The World Bank.
    2. Persson, Torsten & Tabellini, Guido, 1996. "Federal Fiscal Constitutions: Risk Sharing and Moral Hazard," Econometrica, Econometric Society, vol. 64(3), pages 623-646, May.
    3. Yingyi Qian & Barry R. Weingast, 1996. "China's transition to markets: market-preserving federalism, chinese style," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 1(2), pages 149-185.
    4. Seabright, Paul, 1996. "Accountability and decentralisation in government: An incomplete contracts model," European Economic Review, Elsevier, vol. 40(1), pages 61-89, January.
    5. Wildasin, David E., 1989. "Interjurisdictional capital mobility: Fiscal externality and a corrective subsidy," Journal of Urban Economics, Elsevier, vol. 25(2), pages 193-212, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Alina Ligia Dumitrescu, 2013. "The Fiscal Federalism And The Good Economic Governance In European Union," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 1(2), pages 25-33, November.
    2. Abdul-Wahab, Shamsia & Haruna, Issahaku & Nkegbe, Paul Kwame, 2018. "Effectiveness of resource mobilisation strategies of the Wa municipal assembly," MPRA Paper 96880, University Library of Munich, Germany, revised 24 Oct 2018.
    3. Morompi Ole Masago & Sambu Alice & Kweingoti G. Reuben, 2021. "Effects of Covid-19 Pandemic on the Welfare of the Maasai Girl Child in Narok County, Kenya," European Journal of Social Sciences Articles, Revistia Research and Publishing, vol. 4, ejss_v4_i.
    4. Sharma, Chanchal Kumar, 2014. "Governance,Governmentality and Governability: Constraints and Possibilities of Decentralization in South Asia," MPRA Paper 61349, University Library of Munich, Germany, revised 15 Jan 2015.
    5. Connelly, John, 2008. "ICT Governance: Towards Federalized Structure and Solution," MPRA Paper 12365, University Library of Munich, Germany.
    6. Sharma, Chanchal Kumar, 2008. "Emerging Dimensions Of Decentralization Debate In The Age Of Glocalization," MPRA Paper 6734, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    2. Auriol, Emmanuelle & Dahmani-Scuitti, Anaïs, 2025. "Decentralization in Autocraties," European Economic Review, Elsevier, vol. 172(C).
    3. Gradstein, Mark, 2017. "Government decentralization as a commitment in non-democracies," Journal of Comparative Economics, Elsevier, vol. 45(1), pages 110-118.
    4. Antonio Farfan-Vallespin, 2012. "Decentralization as Unbundling of Public Goods Provision - New Effects of Decentralization on Efficiency and Electoral Control," Discussion Paper Series 21, Department of International Economic Policy, University of Freiburg, revised Nov 2012.
    5. Soko Aida, 2018. "(Dis)Advantages af Decentralization Models Driven by Non-Economic Reasons: The Case of Bosnia and Herzegovina," South East European Journal of Economics and Business, Sciendo, vol. 13(1), pages 81-92, June.
    6. Sanguinetti, Pablo & Tommasi, Mariano, 2004. "Intergovernmental transfers and fiscal behavior insurance versus aggregate discipline," Journal of International Economics, Elsevier, vol. 62(1), pages 149-170, January.
    7. Reingewertz, Yaniv, 2014. "Fiscal Decentralization - a Survey of the Empirical Literature," MPRA Paper 59889, University Library of Munich, Germany.
    8. Lant Pritchett & Deepa Narayan & Soumya Kapoor, 2009. "Moving Out of Poverty : Volume 2. Success from the Bottom Up," World Bank Publications - Books, The World Bank Group, number 11838.
    9. Kollintzas, Tryphon & Philippopoulos, Apostolis & Vassilatos, Vanghelis, 1999. "Normative Aspects of Fiscal Policy in an Economic Union: a Review," CEPR Discussion Papers 2212, C.E.P.R. Discussion Papers.
    10. Breuille, Marie-Laure & Gary-Bobo, Robert J., 2007. "Sharing budgetary austerity under free mobility and asymmetric information: An optimal regulation approach to fiscal federalism," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1177-1196, June.
    11. Chunli Shen & Jing Jin & Heng-fu Zou, 2012. "Fiscal Decentralization in China: History, Impact, Challenges and Next Steps," Annals of Economics and Finance, Society for AEF, vol. 13(1), pages 1-51, May.
    12. Geradin, D.A.A.G. & McCahery, J.A., 2005. "Regularory co-opetition : Transcending the regulatory competition debate," Discussion Paper 2005, Tilburg University, Tilburg Law and Economic Center.
    13. Keith Blackburn & Gareth Downing, 2015. "Deconcentration, Corruption and Economic Growth," Centre for Growth and Business Cycle Research Discussion Paper Series 209, Economics, The University of Manchester.
    14. Enikolopov, Ruben & Zhuravskaya, Ekaterina, 2007. "Decentralization and political institutions," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2261-2290, December.
    15. Liangliang Liu & Wenqing Zhang, 2022. "Vertical fiscal imbalance and energy intensity in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(2), pages 509-526, October.
    16. Perez-Sebastian, Fidel & Raveh, Ohad, 2016. "Natural resources, decentralization, and risk sharing: Can resource booms unify nations?," Journal of Development Economics, Elsevier, vol. 121(C), pages 38-55.
    17. Sharma, Chanchal Kumar, 2015. "Re-imagining Federalism in India: Exploring the Frontiers of Collaborative Federal Architecture," MPRA Paper 63160, University Library of Munich, Germany, revised 14 Feb 2015.
    18. Sato, Motohiro, 2003. "Tax competition, rent-seeking and fiscal decentralization," European Economic Review, Elsevier, vol. 47(1), pages 19-40, February.
    19. Martin Bodenstein & Heinrich Ursprung, 2005. "Political yardstick competition, economic integration, and constitutional choice in a federation:," Public Choice, Springer, vol. 124(3), pages 329-352, September.
    20. Christos Kotsogiannis & Robert Schwager, 2006. "Fiscal Equalization and Yardstick Competition," Working Papers 2006-15, University of Kentucky, Institute for Federalism and Intergovernmental Relations.

    More about this item

    Keywords

    Federalism; Fiscal Decentralization; centralization;
    All these keywords.

    JEL classification:

    • Z0 - Other Special Topics - - General
    • H1 - Public Economics - - Structure and Scope of Government
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H8 - Public Economics - - Miscellaneous Issues
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

    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:pra:mprapa:178. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.