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The Australian fiscal equalisation system and capital transaction

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  • Bob Searle

Abstract

This Paper examines how best to integrate the assessment of recipient governments' relative needs for the funding of capital into an overall assessment of needs for grant distribution aimed at the equalisation of fiscal capacities. It is based on the assessment processes of the Commonwealth Grants Commission in Australia and discusses how those processes might best be extended to include the States' capital funding requirements. The conclusion is that it is the assessments of States' needs to finance the recurrent impacts of capital transactions, rather than those transactions themselves, that would give a better result.

Suggested Citation

  • Bob Searle, 2002. "The Australian fiscal equalisation system and capital transaction," ICER Working Papers 02-2002, ICER - International Centre for Economic Research.
    • Handle: RePEc:icr:wpicer:02-2002
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    File URL: http://www.bemservizi.unito.it/repec/icr/wp2002/searle02-02.pdf
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