Local Government Finance Research Articles

The Lease-debt Relationship of Chinese Local Government Financing Vehicles

In recent years, the number of local government financing vehicles in China has been increasing, the scale of development has been expanding rapidly, and the financing methods used have also been increasing. At present, bank loans are still the main financing channels, but the financing lease mode has become one of the important ways for local government financing vehicles to obtain financial access. This paper mainly studies the lease-debt relationship of Chinese local government financing vehicles, and selects the unbalanced panel data of 1435 Chinese local government financing vehicles from 2012 to 2020 for empirical analysis. The empirical results show that the relationship between the lease ratio and the loan ratio is significantly negative, indicating that the lease-debt relationship of the local government financing platform in China is a substitution relationship. Increasing the use of lease financing will reduce the use of loan financing by the local government financing platform, while the control variable bond ratio, total assets, leverage ratio and cash ratio also have a significant impact on the lease ratio, Finally, based on the empirical results, this paper analyzes and puts forward corresponding suggestions.

Theories, principles, opportunities and challenges of local government financing: A Comprehesive review of literature

This article provides a comprehensive examination of the theories, principles, benefits, and challenges that underpin the multifaceted landscape of local government financing. The discussion delves into the theoretical foundations of fiscal federalism, the Benefit and Ability-to-Pay principles, the Tiebout Model, Tax Increment Financing (TIF), and Public-Private Partnerships (PPPs), which guide the allocation and management of financial resources at the local level. It underscores the importance of intergovernmental cooperation, equity in taxation, and local autonomy in shaping financial policies and practices. The article further highlights the advantages of local government financing, including efficient resource allocation, local control, diversified revenue sources, and economic growth. However, it also acknowledges the persistent challenges, such as equity concerns, fiscal sustainability, coordination, and public accountability. In conclusion, this article underscores the significance of striking a balance between theory and practice to ensure effective and responsible local government financing for the betterment of communities.

Theories of local government financing: A comprehensive theoretical review

This journal article provides a comprehensive theoretical review of various models and theories that underpin local government financing. It explores the Principal Agency theory, the Theory of Fiscal Federalism, the Benefits-Pay-Principle theory, the Cost-of-Service Theory of Taxation, the Efficiency Service theory, the Intergovernmental Fiscal Framework, the Revenue Enhanced Model, the Benefit Model of Local Finance, the Modified Quantitative Service Delivery Model (MQSDM), and the Theory of Fiscal Federalism. The article examines the foundations, principles, and applications of these theories in the context of local government finance. By addressing the theoretical underpinnings of local government financing, this article contributes to a deeper understanding of the complexities and challenges involved in funding essential public services and infrastructure at the local level.

Scenario Analysis of Agricultural Ecological Compensation in Henan Province from the Perspective of Fiscal Expenditure

At present, the main sources of agricultural ecological compensation funds in China are central financial transfer payments and special funds, while local government funds are auxiliary sources. Compensation methods are mainly implemented by specific means such as government financial transfer payments and financial subsidies. Taking Henan Province as an example, based on the perspective of fiscal expenditure, this paper takes agricultural ecological compensation as the research object, and sets benchmark scenarios and development scenarios from near and far periods to predict the government's affordability. According to the GDP, population, fiscal revenue, general public budget expenditure and agricultural expenditure of the whole province, it is predicted that the fiscal expenditure pressure of agricultural ecological compensation will not increase greatly from 2023 to 2027, but with the development of social economy, the fiscal expenditure pressure of agricultural ecological compensation will be higher from 2028 to 2037. Facing this problem, this paper proposes a solution to the financial binding force.

Interrogating the Constitutional Foundations for Local Government Financing in Nigeria

Interrogating the Constitutional Foundations for Local Government Financing in Nigeria

Assessment of the financial situation of rural municipalities in Poland depending on the activity of their inhabitants in the development of non-agricultural business activity

Purpose: The purpose of the article is to identify and assess the financial situation of rural communes in Poland depending on the activity of their inhabitants in undertaking and developing non-agricultural economic activity. Design/methodology/approach: The financial situation of rural communes in Poland was identified and assessed depending on the activity of their inhabitants in undertaking and developing non-agricultural economic activity. The empirical material of the article applies to both the whole country and all rural communes in Poland. Numerical data come from the Local Data Bank of the Central Statistical Office in Warsaw and concerns 2019-2021. The empirical material collected and ordered was developed in a descriptive, tabular, and graphic form, using the comparative analysis method. Furthermore, a point assessment of all diagnostic characteristics was performed that illustrates the financial situation of rural communes in Poland against the background of the entire country for the years 2019-2021. Findings: The analysis of statistical data has confirmed the research hypothesis, which assumes that the financial situation of rural communes in Poland is related to the activity of their inhabitants in undertaking and developing non-agricultural business activity, with it clearly the best in units with high activity of residents in this area. Originality/value: The originality of the work is the original approach to the analysis of the research issues undertaken. For the use of the research, the article combined and uses an original indicator of residents' activity in the development of non-agricultural economic activity in a given local government unit (commune) against the background of the country and other local government units (communes). In addition, the financial situation of the examined local government units was also assessed in the context of the country. The work is addressed primarily to local government officials responsible for public local government finances, as well as for conditions and possibilities and directions of local socioeconomic development of rural communes in Poland. Keywords: financial situation, rural communes in Poland, economic activity of residents, non-agricultural economic activity Category of the paper: research paper.

Trend of Local Government Finance in 2023.

Trend of Local Government Finance in 2023.

ANALYSIS OF PUBLIC FUND MANAGEMENT IN IFE CENTRAL LOCAL GOVERNMENT, OSUN STATE, NIGERIA.

The current financial predicament of Local Government Councils and constant pressure for increase in allocation has been in the front burner of Local Governments Administration in Nigeria. The focus of this research paper examined Local Government Finance in Nigeria using Ife Central Local Government. Data for the study were gathered from face-to-face interview and available records in Ife Central Local Government. The data collected were subjected to descriptive statistics (simple percentage) and content analysis. The study explored various sources of financing local governments in Nigeria. It also explained financial relationship of Nigerian local government vis-à-vis State and Federal Government using theory of decentralization. The study went further to explain financial management in Ife Central L.G. Result obtained from the analysis shows that financial transfers from federal government (Statutory Federal Allocation) are the most viable and reliable source of local government revenue and that without Federal Allocation no capital project can be embarked on. Therefore, to arrest this financial situation that local government find itself, that is over dependence on federal allocation, this work submitted that local government should increase their revenue base by laying more emphasis on the internal revenue sources, especially those areas that are hitherto neglected or not been fully exploited.

Research on the path of transformation and development of local government financing platforms and international experience

Research on the path of transformation and development of local government financing platforms and international experience

Credit Risk Prevention of Local Government Financing Platforms: Taking Liuzhou TK Company as an Example

Credit Risk Prevention of Local Government Financing Platforms: Taking Liuzhou TK Company as an Example

THE FLYPAPER EFFECT PHENOMENON OF INTERGOVERNMENTAL TRANSFERS DURING THE COVID-19: EVIDENCE FROM INDONESIA

This study aims to confirm the flypaper effect phenomenon and the impact of the Covid-19 pandemic on local own-source revenue (LOR), general allocation fund (GAF), and local government financing on local government expenditure in Indonesia. The research used a quantitative method, while the sample was data on regional government budget (RGB) realization in 335 local governments in 2019 – 2020. The data were analyzed using Moderating Regression Analysis. The study found that there was a flypaper effect phenomenon that encouraged the local governments to use GAF, instead of LOR for their local expenditure. The GAF and local government expenditures were higher during the Covid-19 period. To overcome the flypaper effect phenomenon, the central government is advised to improve the GAF policy by setting priorities for its use. Local governments must encourage micro, small, and medium enterprises to help support LOR. This study proves there exists the phenomenon of the flypaper effect in developing countries that implement the presidential system (republic) and provide substantial empirical evidence on government spending policies during crisis and non-crisis (Covid-19).

Quantitative Assessment of Five Geosites Locations in Northeast Misan Southeast Iraq by Using Satellite Images and Field Survey

Sentinel satellite images are enhanced using Erdas-2014 and analyzed by GIS techniques to distinguish the main geological features in the study area. Satellite image is processed to select and determine several geological and geomorphological features that are evident through a Sentinel image as a Geopoint. These Geopoints were checked in the field survey to be geosite. Field techniques include phtogeological and terrestrial photogrammetry. Quantities’ assessment of geological heritage in five geosite in Potential Geopark (Telal AL Band ). Scientific, educational, functional, and touristic categories values were calculated for each Geosite. The Results of the quantitative assessment depend on questionnaire data for three types of audiences: university students, Government circles, researchers, tourists then, and previous geoscientific studies. The infrastructures like paved roads, bridges, and security, played a vital role in the scores in different studied sites. The infrastructures of geoutorism need to devselop through local government funding and community people investments. The area of east Missan required more professional promoting efforts to develop geoeducation and geotourism. The results of the study show the Telal AL Band geopark of geoeducation, geotourism, and economical importance

Analysis Of The Padang City APBD For The 2018 Fiscal Year: Involution Of Siding To The Public

Within the framework of national development, the budgeting system is an inseparable part of the national development planning system. Planning and budgeting are part of management development that is designed to realize the ideals of national development. Public finance is one of the most critical dimensions to assess the government's partiality to general needs. Many studies have addressed the essential roles of the government budget in trust in government. However, there has been no research that has critically examined the state's alignment with the community through regional budgets. Therefore, this study contributes to the body of knowledge by analyzing local government finance and identifies the weakness of the expenditure. We chose the financial conditions of the city government of Padang in 2018 as the research object. The research was conducted employing qualitative and secondary sources. This study found that the budget is not entirely in favor of the public. Many expenditures have been spent on the program, which does not directly affect society. In sum, Padang city budget has not fully benefited the people of Padang city and sided with them. Our analysis contributes to the study of public finance by strengthening pro-society finance. This study also contributes to the local government in designing and implementing public finance.

Community and Economic Development in Pakistan: The Case of Citizen Community Boards in Hafizabad and a Japanese Perspectives

In 2001, a scheme called Citizen Community Board (CCB), a kind of community-based organisation (CBO), was introduced in Pakistan as a devolution policy, under which local people propose to the local government development projects through forming a CCB and upon approval the local government funds 80 percent of the project cost. Since 2001, however, both the number of CCBs and that of approved projects have been below the expected level. This raises a concern that the Pakistani society with limited historical experience in CBO-based development is too handicapped for the CCB scheme to be successful. Although the number of empirical studies on Pakistan’s CCB scheme has been increasing [e.g., see Cheema and Mohmand (2004), Cheema, et al. (2006)], our understanding on conditions for a success of such schemes is limited. This paper thus attempts to analyse the conditions in the context of community and economic development in Pakistan from Japanese Perspectives.

Determinants of Collective Action under Devolution Initiatives: The Case of Citizen Community Boards in Pakistan

In 2001, a scheme called Citizen Community Board (CCB), a kind of communitybased organisation (CBO), was introduced in Pakistan, under which local people propose development projects to the local government through forming a CCB, and upon approval the local government funds 80 percent of the project cost. Since 2001, however, both the number of CCBs and that of approved projects have been below the expected level. This raises a concern that the Pakistani society with limited historical experience in CBO-based development is too handicapped for the CCB scheme to be successful. This paper addresses this concern through quantifying the determinants of successful formation of a CCB and those of successful development activities conditional on the formation. The regression results using a cross-section dataset in a district in Pakistan Punjab in 2004-05 suggest that the rules within a CCB and the type of leadership are key to the success of CCB initiatives.

STRATEGI KOMISI PEMILIHAN UMUM KALIMANTAN TIMUR DALAM MENINGKATKAN ANGKA PARTISIPASI PEMILIH PADA PEMILU SERENTAK TAHUN 2024

Strategy of the General Election Commission (KPU) of East Kalimantan in Increasing Voter Participation Rates in the 2024 Simultaneous Elections, Emi Rohaimi, Postgraduate Masters Program in Public Administration at Mulawarman University, February 2022, Prof. Dr. Hj. Aji Ratna Kusuma, M.Si and Prof. Dr. Hj. Hartutiningsih, M.Si.This study aims to produce a choice of strategies and efforts that can be considered by the East Kalimantan KPU in increasing voter turnout in the 2024 election. The study uses a SWOT analysis model in a qualitative approach.The results of the study show: 1. That there are a number of strategic options for the East Kalimantan KPU, namely (1) SO: regulation, internal-external cooperation, completing infrastructure, optimizing funding sources. (2) WO: optimizing human resources with stakeholders and new partners, strengthening communication and coordination partnerships, controlling critical thinking, and developing creativity. (3) ST: regulation suppresses negative competition, HR suppresses hardline and transactional group thinking; National government and local government funding; complete the facilities and infrastructure; strategies and methods of controlling critical thinking in urban communities. (4) WT: preventing negative competition for election participants, optimizing ethok officers or volunteers as well as driving cadres, developing Regency/City KPU creativity; communication and coordination prevent misunderstandings; critical and intelligent thinking control partnership; 2. Efforts that can be made by the East Kalimantan KPU to increase voter participation rates. (1) Internal strengthening, utilizing and empowering strengths and minimizing weaknesses. Improving the quality of human resources, partnerships with educational and political institutions, as well as suffrage education. (2) Paying attention to national and regional dynamics to deal with external conditions with the assistance of Regency/Municipal KPU for well-targeted socialization. Keywords: Strategy to increase voter participation, General Election.

부동산 관련 지방세제의 문제점과 개선방안

A local tax system is established as a taxation system that takes into account the price function for local government work and public services and the revitalization of the local economy. To strengthen the financial independence of local governments, there is a need to expand the fiscal decentralization and the size of local governments' own financial resources.
 The tax revenue from local government finances is composed mainly of local taxes, local nontax revenue, state subsidies, local grants, and local grant tax and other income. Much of the local tax is centered on property transaction tax, thereby being characterized by being closely related to the real estate business.
 A flow of real estate taxation imposes a heavy tax on multiple homeowners, thereby leading to pressuring selling as a measure to prevent a price from rising due to the lack of supply. This tax policy is functioning as a means of stabilizing the property prices and transactions by regulating real estate speculation, not the financing method that is the original purpose of the tax.
 Owing to a difference in economic conditions between regions, the inequality of local government's fiscal power poses another level of a problem. The problem of income disparity between regions makes it a rule to be dealt with at the level of national redistribution policy with the support from the central government. However, the income gap between regions can be resolved through the industrial policy or the balanced national development.

Effect of Local Governments Finances on Economic Growth of Nigeria: An Empirical Exploration

It is expected that local government as the closest tier of government to the people should promote grassroots development while at the same time contributeto national economicgrowth and development. The extent to which this is realized particularly in a developing country like Nigeria has not been given the empirical attention it deserves in past studies. Therefore, in this study, we examined the effect of local government finances (comprising total revenue, capital and recurrent expenditure) on economic growth in Nigeria for the period, 1993 to 2021. Dynamic Least Squares, Fully Modified Least Squares, Canonical Cointegrating Regression, andGranger causality techniqueswere applied to the annual time series data sourced from Central Bank of Nigeria’s statistical bulletin. Empirical findings of this study confirmthe existence of a long-run relationship between local government finances and economic growth in Nigeria. Furthermore, local governments’ recurrent and capital expenditureswere found to have positive but non-significant effect on economic growthunlike local governments’ total revenue which has negative and non-significant effect on economic growthof Nigeria. This study found nocausal relationship between local government finances and economic growth.However, there isa unidirectional causality runningfrom revenue to recurrent expenditure at the local government level. Likewise, capital expenditure has a unidirectional causality with recurrent expenditure. It can therefore be concluded that local government finances have no significant effect on economic growth ofNigeriain the study period. This study recommends that local government finances should be re-engineered towards growth-inducing projects, programmes and investments.

Amalgamation and Local Finance: A Case Study of Ukraine

Purpose: The article aims to measure the impact of the voluntary amalgamation approach applied in Ukraine in the course of the decentralization reforms undertaken over a period of five years, and assess how much these reforms have been successful in improving the local government fiscal situation. Ukraine began a long-delayed decentralization process in 2015 through amalgamation based on a voluntary approach, with an emphasis on improving the fiscal resources of the amalgamated units. The decentralization reform was based on three pillars: (1) voluntary amalgamation of the territorial units, (2) enhanced financial resources through own source revenues and infrastructure grants, and (3) utilization of inter-municipal cooperation to support improved service delivery.Methodology: A time series of fiscal data from amalgamated territorial communities in selected regions of Ukraine have been analysed to measure the impact of the amalgamation policy on the amalgamated territorial units.Findings: The fiscal improvements anticipated by the amalgamated territorial units have not been demonstrated by the statistical data analysis and no significant improvement in local government finances appears to have been realized through the application of a voluntary merging approach. There have been significant regional and urban/rural variations based on the population segments and access to financial resources.Academic contribution to the field: While there has been considerable research on the impact of merging or amalgamating local governments, there has been very little, if any, on the voluntary approach to amalgamation.The study seeks to address this problem and present evidence of the advantage of utilizing a voluntary over a mandatory approach to amalgamation.Significance: The study provides a unique opportunity to measure the impact of amalgamation process in Ukraine over a five-year period based on the voluntary approach to amalgamation and determine how much this approach and the accompanying policies have been successful in improving the local government fiscal situation.

Analysis Of Regional Financial Potential for Fiscal Independence : North Maluku Case Study

The objectives of this study are: (1) To find out the potential development of regional performance and financial capabilities in the era of autonomy in North Halmahera Regency, (2) To know the simultaneous influence of regional financial potential from local taxes, tax revenue sharing funds / SDA, as well as tax revenue sharing funds from provinces and other local governments on fiscal independence in the era of autonomy in North Halmahera Regency, (3) To know the partial influence of local tax potential on fiscal independence in the era of autonomy in North Halmahera Regency (4) To know the partial influence of potential funds for tax revenue sharing and non-local taxes on fiscal independence in the era of autonomy in North Halmahera Regency. (5) To determine the partial effect of potential tax revenue sharing funds from provinces and other governments on fiscal independence in the era of autonomy in North Halmahera RegencyAnd the methods used in this study are methods of fiscal independence analysis and Multiple linear regression analysis. The results showed in the calculation of ratios suggesting that (1) the performance and financial capability of the region is still very low, less maximal in effectiveness and efficiency., (2) The Fund for Tax Revenue Sharing and SDA, as well as the Tax Revenue Sharing Fund of the Province and Other Local Governments have the most contribution in its influence to the Index of Fiscal Independence of North Halmahera Regency. While local taxes contribute the least influence. Local Tax Variables, Tax Revenue Sharing Funds and SDA, and Tax Revenue Sharing Funds from Provinces and Other Local Governments simultaneously positively and significantly affect fiscal independence by 73.75%, (3) Local Tax Variables are positively correlated and have a significant effect on Fiscal Independence. (4) Variable Tax Revenue Sharing Fund and SDA are positively correlated and have a significant effect on Fiscal Independence(5) Variable tax revenue sharing funds from other provinces of Local Government funds are positively correlated and have a significan effect on independence. Keywords : Regional Financial Potential, Fiscal Independence, Multiple Linear Regression Analysis