The Assignment Of Revenues And Expenditures In Intergovernmental Fiscal Relations
Páginas: 3 (523 palabras)
Publicado: 8 de agosto de 2012
Sergio Arboleda University
Maira Alejandra Sánchez Cárdenas
The assignment of revenues and expenditures in intergovernmental fiscal relations
SUMMARY
Richard Musgrave presents the functions ofpublic finances by establishing three objectives: macroeconomic stabilization, income redistribution and the allocation of resources which must be purchased through the income and expenditure and alsothe difficulty that arises for the allocation of these functions among levels of government, especially between the central government and the governments of the second level.
Macroeconomicstabilization is to maintain a high level of utilization of resources and a stable currency where a subnational government does not have any role to play in this field. A stable fiscal policy applied locallywill fade rapidly in all areas of the country (Barea, 2004, The Constitution and the Treasury).
This is what Musgrave refers in his text, usually subnational governments can not affect macroeconomicconditions within its borders as most of the attempts are failures, because macroeconomic policies by these governments of second level leaks, are out of the area. In addition to the limited power tothe loans and the lack of ability to print money with these governments and other difficulties.
Now talking about the role of income redistribution is to establish and ensure a just state of thedistribution of this wealth. According to Musgrave, to be effective redistribution of income through programs, public spending should be uniform within an area is given a high degree of capital mobility,work and residence, which leads to the kernel function redistribution is assigned to the central treasury.
In Colombia, the income distribution has deteriorated. Several researchers agree that thedistribution of education, and unequal wages are the main determinants of this major setback. However, the same applies to regional differences in inequality (Bonilla, 2009, Regional Economics,...
Maira Alejandra Sánchez Cárdenas
The assignment of revenues and expenditures in intergovernmental fiscal relations
SUMMARY
Richard Musgrave presents the functions ofpublic finances by establishing three objectives: macroeconomic stabilization, income redistribution and the allocation of resources which must be purchased through the income and expenditure and alsothe difficulty that arises for the allocation of these functions among levels of government, especially between the central government and the governments of the second level.
Macroeconomicstabilization is to maintain a high level of utilization of resources and a stable currency where a subnational government does not have any role to play in this field. A stable fiscal policy applied locallywill fade rapidly in all areas of the country (Barea, 2004, The Constitution and the Treasury).
This is what Musgrave refers in his text, usually subnational governments can not affect macroeconomicconditions within its borders as most of the attempts are failures, because macroeconomic policies by these governments of second level leaks, are out of the area. In addition to the limited power tothe loans and the lack of ability to print money with these governments and other difficulties.
Now talking about the role of income redistribution is to establish and ensure a just state of thedistribution of this wealth. According to Musgrave, to be effective redistribution of income through programs, public spending should be uniform within an area is given a high degree of capital mobility,work and residence, which leads to the kernel function redistribution is assigned to the central treasury.
In Colombia, the income distribution has deteriorated. Several researchers agree that thedistribution of education, and unequal wages are the main determinants of this major setback. However, the same applies to regional differences in inequality (Bonilla, 2009, Regional Economics,...
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