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Revenue Sharing, Natural Resources and Fiscal Equalization

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  • Bob Searle

Abstract

A nation’s fiscal transfer system has many facets. Usually, the central government has several objectives in transferring funds to local government . Individual local governments often have objectives that conflict with the central government and with other one another. This paper looks at the relationships between policies associated with reducing vertical fiscal imbalance and the achievement of horizontal fiscal equalization, often a major national (as opposed to a central government) objective. In considering possible ways of reducing VFI, the paper discusses public sector revenue sharing and, in particular, the revenues raised from natural resources, looking at the policy issues that arise and what the considerations are when deciding how these elements of a fiscal transfer system can be combined to meet governments’ overall objectives.

Suggested Citation

  • Bob Searle, 2004. "Revenue Sharing, Natural Resources and Fiscal Equalization," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0416, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper0416
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    File URL: http://icepp.gsu.edu/files/2015/03/ispwp0416.pdf
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    Cited by:

    1. Grant Bishop & Anwar Shah, 2008. "Fiscal Federalism and Petroleum Resources in Iraq," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0826, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. Brosio, Giorgio & Jiménez, Juan Pablo & Ruelas, Ignacio, 2018. "Territorial inequality, equalization transfers and asymmetric sharing of non-renewable natural resources in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    3. Jorge Martinez-Vazquez & François Vaillancourt (ed.), 2011. "Decentralization in Developing Countries," Books, Edward Elgar Publishing, number 14175.
    4. Leonardo G. Romeo & Mohamed El Mensi, 2011. "The Difficult Road to Local Autonomy in Yemen: Decentralization Reforms between Political Rationale and Bureaucratic Resistances in a Multi-party Democracy of the Arabian Peninsula," Chapters, in: Jorge Martinez-Vazquez & François Vaillancourt (ed.), Decentralization in Developing Countries, chapter 15, Edward Elgar Publishing.
    5. Mr. Bob Searle & Mr. Ehtisham Ahmad, 2005. "On the Implementation of Transfers to Subnational Governments," IMF Working Papers 2005/130, International Monetary Fund.

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    Keywords

    Revenue Sharing; Natural Resources and Fiscal Equalization;

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