Revenue Expenditure Research Articles

CHOQUES NOS PREÇOS DOS ATIVOS E A DINÂMICA DAS DECISÕES DE POLÍTICA MACROECONÔMICA: UMA ANÁLISE DA RESPOSTA FISCAL E MONETÁRIA A UMA BOLHA HABITACIONAL

O objetivo deste artigo é investigar os indícios de bolhas racionais nos preços das habitações e analisar os efeitos dos choques nos preços desses ativos nos instrumentos de política monetária e fiscal. A discussão sobre bolhas se limita à análise dos preços das habitações e seus dividendos por meio de testes de cointegração linear e com quebra estrutural. Os resultados sugerem que há indícios de bolhas no mercado habitacional brasileiro. A discussão subsequente avalia os efeitos desse choque no comportamento das séries da inflação, PIB real, consumo das famílias, taxa Selic, receita e despesa governamental, mercado de trabalho e financiamento habitacional, por meio do modelo de vetores autorregressivos. Em suma, observa-se que a bolha estimula a atividade fiscal em um comportamento pró-cíclico. Por outro lado, se verifica que a política monetária, buscando estabilizar a inflação e o produto, tem levado em consideração os possíveis efeitos desestabilizadores causados pela bolha.

Impact of fiscal deficit on economic growth in India: A cointegration analysis

Objectives : To investigate the long run and short run relationship between fiscal deficit and economic growth in Indian economy. Methods and statistical analysis : The study is based on secondary data; objective of the study is examined using time series data from the period 1980-81 to 2013-14. Findings : The Johansen methodology concludes an existence of a one cointegrating relationship among gross domestic product, fiscal deficit, gross domestic capital formation and employment. The finding of the study indicates that one per cent increase in fiscal deficit is likely to decrease Gross domestic product by 0.618609 thus, it shows there is a negative relationship between Gross domestic product and fiscal deficit in the long run. But the Vector Error Correction model discards the short run relationship between fiscal deficit and economic growth. Application/ improvements : Fiscal deficit hampered the economic growth in the long run hence gap between the government revenue and government expenditure should be minimized.

Revenue Portfolio and Expenditures: An Examination of the Volatility of Tax Revenue and Expenditure Patterns during the Great Recession

ABSTRACTLocal governments in the United States are diversifying their revenue streams and becoming less reliant on the inelastic revenue from property taxes. This article examines both how this affects local governments’ revenue stability in economic downturns as well as their levels of expenditures in key functions: capital and social services. Using data from North Carolina counties from both before the Great Recession and after, this article examines reliance on local sales taxes and stability of revenue. The findings suggest that dependence on local sales taxes do increase volatility and reduce expenditures on social services, all else being equal.

Regional Budgets: Revenue Growth and Expenditure Containment

In 2016, actual revenues of Russian regions went up. The overall budget deficit dropped to a nine-year low in response to expenditure containment policies. Nevertheless, the total volume of public debt racked up (accumulated OK) by lower-revenue regions remains high.

AN ANALYSIS OF CONSUMPTION TAXES REGRESSIVE EFFECTS/АНАЛИЗА РЕГРЕСИВНИХ ЕФЕКАТА ПОРЕЗА НА ПОТРОШЊУ

Indirect taxes such as value added tax (VAT), excises and duties have big significance for every country. With their assistance, countries can collect enough funds for financing everyday social needs. The share of consumption tax revenues in total tax revenues is high, because consumption taxes are applied to many products and services and they are resistant to tax evasion. Although they have many positive characteristics they are also very regressive. Low-income households give higher amount of money for basic foodstuff than high-income households. Every new increase of prices can make financial condition worse for poor households.The aim of paper is to point out on regressive side of consumption taxes. Also, some measures for reducing negative effects of consumption taxes will be presented. These measures can additionally help in reducing poverty rate, which is one of the biggest problems for many countries.

Public spending and economic growth for Indian states

The role of fiscal policy has been identified varying with respect to the nature of economic shocks as ensued in the form of fiscal expansion during the global financial crisis and fiscal consolidation in the sovereign debt crisis. Indian economic system has also experienced the similar phenomenon for last couple of years, but now moving towards fiscal consolidation amid the surmountable deficit. The study aims to highlight the contribution of components of public finance to the economic growth of different regions of India considering its states. It can provide useful information for devising the policies related to fiscal consolidation while holding the growth impetus of regions. Empirical results of the study suggest that both capital spending and private sector capital formation have significant positive impact on economic growth of Indian states. It is also found that revenue expenditure has negative influence on the economic growth. Further, the impact of revenue components-tax and non-tax is not found significant for the economic growth.

Public spending and economic growth for Indian states

The role of fiscal policy has been identified varying with respect to the nature of economic shocks as ensued in the form of fiscal expansion during the global financial crisis and fiscal consolidation in the sovereign debt crisis. Indian economic system has also experienced the similar phenomenon for last couple of years, but now moving towards fiscal consolidation amid the surmountable deficit. The study aims to highlight the contribution of components of public finance to the economic growth of different regions of India considering its states. It can provide useful information for devising the policies related to fiscal consolidation while holding the growth impetus of regions. Empirical results of the study suggest that both capital spending and private sector capital formation have significant positive impact on economic growth of Indian states. It is also found that revenue expenditure has negative influence on the economic growth. Further, the impact of revenue components-tax and non-tax is not found significant for the economic growth.

Direction of uneven health-care expenditure: Evidence from Northeast India.

Although the need for ensuring universal coverage in health has received the attention of policymakers under the Millennium Development Goals program, the skewed pattern of health-care expenditure has been increased globally. To find out the pattern of public health-care expenditure in northeastern states of India and also to identify the nature of inter-state variation in health-care expenditure among the states. The study was based on the secondary data collected from the State Finance Figures of Budgetary Statistics of Reserve Bank of India. The period of study was 13 years (2002-2003 to 2014-2015). The study used descriptive statistics and composite supply-side index separately for revenue and capital expenditure by randomizing through the population census figures of 2001 and 2011 for examining the pattern of interstate variation in health-care expenditure. It has been observed that the states having higher mean expenditure registered low compound annual growth rate in health expenditure and thereby causing low per capita value and lower value of the composite index. Thus, the largely populated state needs the due attention of policymaker in reducing the skewed pattern of health-care expenditure.

Performance of Coal Based Thermal Power Plant at Full Load and Part Loads

Power is the critical for the economy development of a country. As the economy grows, the need for more and more power is self-justified. New power installations are capital intensive, and hence, there is urgent need for optimal utilization of existing capacities by efficiently running of thermal power stations and saving energy used as fuel or auxiliary power for running the installations. The present study aims at determining the actual performance of a coal based 210 MW power plant at full and part loads (210 MW and 195.86 MW). Design and actual performance values of boiler efficiency, specific fuel consumption, heat rate and overall efficiency are compared. During actual performance, although small deviations are observed from design values, they may result in substantial loss of revenue and excess operating expenditure. The possible reasons for deterioration are analysed and some possible remedies are suggested.

Causality between Government Expenditure and Government Revenue in Nigeria

This study seeks to establish the causality between government expenditure and government revenue in Nigeria. The type of research adopted is ex post-facto and the updated annual time series data between1986-2015 were obtained through Statistical data bulletins and annual reports of Central Bank of Nigeria in order to evaluate the variables such as total revenue and aggregate public expenditure of the federal government. The study applied co-integration statistical method and vector autoregressive techniques comprising an Error Correction Model (ECM) and Augmented Dickey Fuller as the methods of analyses. The findings showed that there is spend-revenue practice in Nigeria in line with the theory of Barro (1974); Peacock and Wiseman. (1979) indicating that changes in government expenditure triggered changes in government revenue. The Co-integration tests also revealed that there is existence of long run equilibrium relationships between government revenue and expenditure variables. The outcome of this study showed that increase in government expenditure without a simultaneous increase in revenue could broaden the budget deficit.

A Structural Break Analysis of Fiscal Deficit Process in Nigeria

The study examined the sustainability of fiscal policy process in Nigeria for the period 1961 to 2013, using ARDL cointegrating method between government revenue and government expenditure. The Bai-Perron multiple break point tests showed that there was structural shift in variables in 1981 which accounted for unsustainable fiscal deficit throughout the period. It was however, found that fiscal deficit before 1981(1961–1980) was weakly sustainable, while the estimation after 1981(1982–2013) indicated strong sustainability of fiscal policy in Nigeria. We therefore recommend that government should continue with the policies put in place by successive governments since 1982 to ensure stability of macroeconomics environment.

Choice Between Domestic and Foreign Debt: A Case Study of Pakistan

In Pakistan, domestic debt, foreign debt and debt servicing is the most discussed issue among the economists and policy makers. Pakistan has been taking a substantial amount of money in the form of domestic and foreign debt since 1970’s. Most common reason of debt dependency is saving-investment gap and revenue–expenditure gap. To fill these gaps, debts has become a common source. High level of debt servicing left no room for policy makers to carry out macroeconomic reforms in order to increase GDP growth rate. The present study has been conducted to investigate the choice between domestic and foreign debt in promoting economic growth. Auto regressive Distributed Lag (ARDL) approach has been used in the study for the data set from 1972-2010. It is found that both foreign and domestic debt servicing have negatively influenced the economic growth. In the light of the findings of this study, it is suggested that Pakistan should not rely on both external and internal debts to fulfill its gaps. Policy makers should use the policy of maximum revenue generation through domestic resource utilization, divert public expenditure from consumption to investment, promote tax culture and investment in human capital is much needed to reduce dependence on debts.

Becoming John Glenn in the Words of John Glenn

Human space exploration requires massive budgets every fiscal year. Especially under severe financial constraint conditions, governments are forced to justify to society why spending so much tax revenue for human space exploration is worth the cost. The value of human space exploration might be estimated in many ways, but its social significance and cost-effectiveness are two key ways to gauge that worth. Since these measures should be applied country by country because sociopolitical conditions differ in each country and must be taken into consideration, the study on the social significance of human space exploration must take the coloration of a case-study. This paper, focusing on the case of Japan with surveying Japanese literary and national documents as well as taking its sociopolitical conditions into account, examines the social significance of human space exploration.First, we give an overview of the circumstances surrounding Japan's human space exploration program. Derived from the statements of such relevant parties as scholars, journalists, policy makers, and astronauts, this overview indicates that the main concerns about human space exploration in Japan are its social significance and cost-effectiveness (Section 1). Next, an overview of behavioral science—an essential field for human space exploration (referred to in this paper as space behavioral science) that provides support for astronauts—is presented from the perspective of stress research in isolated and confined environments (Section 2). We then give two examples of where such knowledge from space behavioral science research has been applied to terrestrial isolated and confined environments. One is JAXA’s support in 2009 for people who were vulnerable to infection by a new strain of flu and accordingly placed in an isolated and confined facility under the Infectious Disease Law and the Quarantine Law. The other is NASA's support in 2010 for Chilean mine workers who were trapped 700 m underground after a mining accident (Section 3). Based on these case studies, we illustrate the further social utility of such knowledge through a discussion of potential applications in other situations in Japan. Focusing on Japan for its geographical and social features in being an earthquake-prone archipelago and having the world's preeminent aging society, we show that refugees living in evacuation centers and people in an elderly-elderly homecare situation pose socially problematic situations specific to Japan. We then argue that space behavioral scientific knowledge can be applied to support people under these and other isolated and confined environments in various ways (Section 4). Finally, we demonstrate that such an application can be understood as an ethical contribution to Japanese society and that this contribution can be embedded in Japan's space policy (Section 5). We conclude that human space exploration can be a socially significant and cost-effective endeavor that is worthy of tax revenue expenditures because space behavioral science is highly likely to provide unique and useful knowledge to help address various social problems concerning terrestrial isolated and confined environments and support people in sufferings there.

PENGARUH DANA ALOKASI KHUSUS (DAK) DAN PENDAPATAN ASLI DAERAH (PAD) TERHADAP BELANJA MODAL PADA PEMERINTAH KABUPATEN NAGAN RAYA TAHUN 2009-2013

This research was conducted at the Government Nagan Raya years 2009-2013 in order to test the effect of Special Allocation Funds and local revenues for capital expenditures. This study uses data obtained based on the financial statements of the Government of Nagan highway. Testing technique used is multiple linear regression analysis using the program Statistical Product and Service Solutions (SPSS) version 18. The test results showed that capital spending simultaneously influenced by the Special allocation funds and revenue. Special allocation of funds partially affect capital spending by demonstrating the positive direction, the higher allocation of Special Allocation Funds from the central government, the greater the capital expenditure spent. Similarly, the results of testing on revenue partially affecting the capital expenditure with the positive direction, the greater the local revenues realized Nagan Raya District Government, the greater the capital expenditure spent by the regional government.Keywords: Special Allocation Fund, Local Revenue and Capital Expenditure

Tax reform, fiscal decentralization, and regional economic growth: New evidence from China

This paper is the first to examine heterogeneous responses to changes in fiscal decentralization policy associated with the 1994 tax reform in China and the nonlinearity of these responses. Using panel data for 29 Chinese provinces over the period 1990–2012, the paper shows that the effects of revenue and expenditure decentralization on economic growth vary across the three main sectors, with the largest impact on the secondary sector. The results also suggest there is an inverted U-shaped relationship between the degree of revenue (expenditure) decentralization and the growth of the secondary sector. In addition, slow-growing and fast-growing provinces respond differently to changes in both revenue and expenditure decentralization with greater responses from fast-growing provinces. The responses from fast-growing provinces appear to be nonlinear, indicating that fast-growing provinces benefit from appropriate revenue (expenditure) decentralization, but the effect turns negative as the degree of decentralization becomes excessively high. The study provides a way to reconcile the contradicting evidence found in the literature. In addition, the finding on heterogeneous responses to fiscal decentralization has important policy implications.

Political Education Appropriations Law on the National Development Plan in Indonesia

Indonesian government law politics in the national education sector is interesting to observe. One is when linked with the political direction of the government in the allocation of national education fund at least 20% of Revenue Expenditure Budget.This paper reveals the politics of law allocating funds from the national education ground norm to setting national education system. The result says that, the political direction of the Indonesian government to allocate funds for education in the legal construction of the National Development Plan and the National Education System is not yet in favor of the education sector as an instrument in the intellectual life of the nation. It can be seen from Inconsistence arrangement about the government's responsibility to change the direction of national education the responsibility of allocating funds by central or centralized to decentralized politics. Therefore, if it is necessary to go back to ground norm recentralization centralized education budget, because decentralization did not fully provide the best solution, especially in education.

Institutionalist versus distortionist views of labor market reforms: An investigation into the post-liberalized manufacturing sector in India

Labor regulation and employment relation has been investigated in India in light of the seminal work of Besley and Burgess (2004), considering formal sector manufacturing employment as the explained variable. Empirical findings support, although not very strongly, the institutionalist view, i.e., pro-worker amendment in labour laws induces employment. Among the other factors, real wage rate has significant negative effect on employment, whereas that for real per capita developmental capital expenditure, per capita electricity generation capacity and real per capita net state domestic product is significant positive. However, effect of per capita real developmental revenue expenditure is inconclusive. In other words, although it improves employability of workers through their human capital improvement, which is probably met up at the cost of worsening overall infrastructural development, through reducing corresponding capital expenditure! Supporting evidence has also been provided favoring this conjecture.

Analysis of Public Debt and Fiscal Sustainability at Sub National Level: Case of Haryana

Sound Management of Public Finance at sub-national level is important for efficiency and effectiveness of government intervention programs. The state government presented ‘White Paper on Haryana State Finances’ in an attempt to capture the trends of financial instabilities and weakness in State Finances. In this backdrop, the paper analysed state finances to understand debt sustainability of the state for the period 1980-81 to 2014-15 using debt sustainability i.e. domar-debt sustainability approach, indicator analysis and budget constrain approach. Paper found that though the state finances of Haryana are well managed as broad trends do not indicate major problem of sustainability but constraints started to be visible as debt accumulation is rising alongwith pressure of debt burden. Interest payments as percentage of GSDP and as percentage of revenue expenditure have declined with time but maturity profile of outstanding state government securities indicates that from year 2018-19, interest repayment burden is likely to increase as 22.9 percent of its securities will be maturing during 2018-20 period. Traditional debt sustainability indicators support the view that debt liabilities of the state are sustainable but debt sustainability position of Haryana on debt sustainability indicators vis-a-vis other NSC states for the period 2010-11 to 2014-15 has deteriorated. The state is required to increase its revenue base by following a prudent fiscal strategy by enhancing its own non-tax revenues through user charges and by recovering cost from government services.

ANALISIS PENGENDALIAN INTERN ASET TETAP PADA PT. HASJRAT MULTIFINANCE CABANG MANADO

Fixed assets have a very important role for any company. Hence the need for the internal control system of fixed assets aimed at ensuring the security of company property, checking the accuracy and correctness of accounting data, to help encourage compliance policy leaders are set beforehand. This study aims to determine the application of the internal control structure of fixed assets at PT. Hasjrat Multifinance Branch Manado. Data analysis method used is descriptive method is a method to describe or analyze the results of the study but not used to make broader conclusions. The data used is qualitative data with secondary data sources, data collection techniques done is documentation and interview techniques. The results of research by the author, on the analysis of internal control of fixed assets at PT. Hasjrat Multifinance Branch Manado, concluded that internal control has not been effectively implemented. It can be seen from the dual function of labor between the accounting and finance are done by one person, the absence of an audit committee that controls the activity of the company, is not implemented training programs for employees, never done a physical examination once a year for fixed assets, there is no separation capital expenditures (capex) and revenue expenditure as well as the useful life of fixed assets is up is not the removal of fixed assets.

Emerging trends in airport–airline use and lease agreements in the USA

Over the past several years the negotiation strategy and goals of airports in the USA have changed significantly with regard to agreements with their airline partners. Increased volatility and changing airline and airport business models have resulted in the displacement of the traditional term periods for use and lease agreements, resulting in much shorter agreements that are designed and anticipated to meet the needs of the parties for the near term only. Given this new context, it is important to understand where the use and lease agreement fits within the overall financial framework of the airport. This paper identifies some of the most important considerations in drafting a use and lease agreement in the current climate, including rate-setting methodologies and restrictions, cost centres, control over revenue and capital expenditures, access and competition, and risk allocation. In the end, it is important for each airport operator’s negotiating strategy to clearly reflect its financial, operational and developmental goals, and to account for the practical strengths and limitations of the airlines with which it is negotiating. This paper will be particularly useful to new chief financial officers, controllers and airport property personnel, as well as persons on airport governing bodies.