Download PDF by Ron Taber: A Look at Leninism

By Ron Taber

ISBN-10: 0939073366

ISBN-13: 9780939073368

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Situation: Differential net fiscal benefits across jurisdictions or horizontal fiscal imbalances. Requirement: General nonmatching equalization transfers. Situation: Benefit spillover. Requirement: Compensation through openended matching transfers, with the matching rate determined by the benefit-spillout ratio. Situation: Ensuring minimum standards of services across the nation. Requirement: Conditional nonmatching (block) transfers. Situation: Stimulating public expenditure on areas with high national but low local priority.

In some instances, grant objectives are reviewed only after the release of funds. There are some obvious reasons for this state of affairs. Central governments can exercise complete discretion over grant funds without any accountability. Enhanced flexibility is achieved at the cost of transparency, objectivity, and accountability; specific-purpose grant programs are used for pork barrel politics rather than for national objectives. Some specific-purpose grant programs provide perverse economic incentives, raising deficits to qualify for higher grants.

A monetary policy has little scope for being carried out at a local level. These guidelines for a centralized fiscal policy have, however, only limited relevance for a country with a decentralized constitution. Decentralized fiscal policies have worked well in highly decentralized federations like Canada, Switzerland, and the United States, but the concept of a decentralized monetary policy does not exist. The proposition that monetary authority should be independent of any level of government conflicts with a parliamentary system of government.

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A Look at Leninism by Ron Taber

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