Non-tax Revenue Research Articles

Revenue loss from legal timber in Indonesia

The link between forest revenue administration and under performance of revenues from legal timber has received little attention in the literature. This article analyzes revenues from the timber royalty and reforestation fund fee, two important forest non-tax revenues in Indonesia whose tropical forest has been under threat of extensive deforestation particularly from commercial timber logging. It shows that revenue realization does not reflect potential with two key findings: first, timber royalty revenues represent only 52% of their potential, and second, revenues from reforestation fund fee suggest a counter-intuitive pattern – revenue realization is 34% above its potential. We provide plausible explanations from the perspective related to features of revenue collection. We further consider policy relevance in terms of forest revenue administration.

FAKTOR-FAKTOR MENENTUKAN DALAM KEBERHASILAN OPTIMALISASI PENGELOLAAN PENERIMAAN NEGARA DI SEKTOR KELAUTAN DAN PERIKANAN

Changes in the global order and national economic, social, political and technological dynamic growing demand accelerated national development in various sectors. No exception marine and fisheries sector. These sectors need to adapt and meet the challenges of the strategic environment that moves fast. The magnitude of the potential for marine resources and fisheries are not yet able to contribute significantly to the income or revenues in the marine and fisheries sector so that the implications of fishing communities in particular and citizens in general have not increased the level of welfare. This shows riweuhnya problems. One kariweuhan the problem, not optimal or poor management of state revenue in the sector and Fisheries. Potential state income or non-tax revenues (non-tax), which can be optimized in the marine and fisheries sector that has not been excavated and managed in an orderly manner will be successfully optimized the concept of normative and academic as well as the deciding factor is the Leader and Leadership, Civil Society / Community Activist Fishing organized, Institutional Reform and human Resources, Technology Adoption, Creation mision values and share a culture of honesty, collaboration between agencies, communication via medsos. Optimization of state revenue in the marine and fisheries sector ranging from Rp25 trillion per year that can be imposed on ships over 30 GT bertonasi because the ship will be able to catch fish at sea about 2000 tons of various levies such as taxes and other fisheries exploitation can be optimized. And the potential of the catch wholly revolves around Rp300 trillion each year. Export potential of fish farming sector will contribute about 60 million tonnes per year.

The Effect of Central Grants on Local Tax and Non-Tax Revenue Mobilisation in a Conflict Setting: Evidence from CCte ddIvoire

This analysis uses panel data from thirty-five departments over the period 2001-2011 to analyse the effect of grants from central government on local revenue mobilisation in Cote d’Ivoire. The study considers the two components of local own revenue in Cote d’Ivoire: tax revenue (LTR) and non-tax revenue (LNTR). To perform the investigation, the analysis is based on a carefully-constructed novel dataset, and very recent and appropriate econometric estimators (Grouped Fixed Effects (GFE)). The GFE method assumes that unobserved heterogeneity can be constant and/or varying over time among individual departments. We combine this method with Instrumental Variable (IV) regressions in a two-stage least squares procedure to control for endogeneity of grants. Overall, the results show a statistically significant and positive effect of central grants on local mobilisation of tax and non-tax revenue. Thus, the study finds that central grants to municipalities do not displace local revenue, but instead lead to higher revenue. However, the effect on tax revenue is more important than that on non-tax revenue. A 10 per cent increase in total grants to local government is associated with a 4.1 per cent increase in tax revenue mobilised by local administration, while increasing non-tax revenue by only 1.8 per cent. We also find that, although conflict has a negative impact on mobilisation of local revenue, this impact remains generally limited. The conflict is not significant at 5 per cent statistical significance.

A Study on the Improvement Plans of Fiscal Index of Local Governments Accordance with Changing Non-tax Revenue System: Focusing on Whether or Not Excluded Non-tax Items are Own-source Revenue

A Study on the Improvement Plans of Fiscal Index of Local Governments Accordance with Changing Non-tax Revenue System: Focusing on Whether or Not Excluded Non-tax Items are Own-source Revenue

Fiscal Decentralization and Corruption in Emerging and Developing Countries

This study focuses on the relationship between fiscal decentralization and ICRG index of corruption risk in both categories of emerging and developing countries, using a sample of 38 countries for the period 2000-2014. The aim is to focus on expenditure and revenue decentralization giving importance to the effects of subnational revenue mobilization on this correlation as: Tax revenue, Non tax revenue and fiscal imbalances. The study shows a significant and robust correlation between expenditure decentralization and the index of corruption: expenditure decentralization tends to reduce the risk of corruption in these two categories of countries. The impact of Tax Revenue is as important in this relationship as it helps reduce the risk even more. While revenue decentralization and especially non-tax revenue has no significant relationship with the index.

Treasury Single Account: A Tool for Effective Cash Management in Nigeria

The Treasury Single Account is a financial tool that unifies all government accounts in a single pool for effective cash management. It ensures that all tax and non-tax revenues are collected from all sources and payments due are made correctly in a timely manner and that government’s cash balances are optimally managed to reduce borrowing costs.TSA was introduced to bring an end to the fragmented multiple accounts kept by all Ministries, Departments and Agencies. The objective of this paper is to examine the effectiveness of the TSA as a tool for effective cash management. The research examines the objectives and benefits of TSA as a catalyst for public financial management in Nigeria. It highlights the emerging issues in TSA implementation, its operational guidelines and essential requirements of the TSA in federating states and the stakeholders responsibilities in the operation of the policy .The paper also discusses the various operational challenges facing the implementation of TSA in Nigeria and concluded that TSA as a financial tool can only achieve its desired objectives in blocking loopholes of wastages and leakages ,curbing corruption and financial recklessness in ranks and file of government functionaries and enthroning transparency and probity, if government put in place enabling environment and adequate legislative supports for the smooth implementation of the policy with minimum infrastructural and technological facilities needed by the MDAs for meaningful compliance. Only gradual implementation of TSA policy can serve as a catalyst and a tool for effective cash management in Nigeria.

Measuring autocratic regime stability

Researchers measure regime stability in autocratic contexts using a variety of data sources that capture distinct concepts. Often this research uses concepts developed for the study of democratic politics, such as leadership change or institutionalized authority, to construct measures of regime breakdown in non-democratic contexts. This article assesses whether the measure a researcher chooses influences the results they obtain by examining data on executive leadership, political authority, and autocratic regimes. We illustrate the conceptual differences between these variables by extending recent studies in the literature on the political consequences of non-tax revenue and unearned foreign income.

광역자치단체의 미수세금과 미수세외수입금의 대손충당금 설정율 차이에 관한 연구

광역자치단체의 미수세금과 미수세외수입금의 대손충당금 설정율 차이에 관한 연구

Tax and Non-Tax Revenue of the Budget: Whatts the Difference?

The article discusses the nature of non-tax public revenue. The author first offers his own universal definition of public revenue. This results in the discovery of a variety of theoretical and practical problems, which include decentralized revenue, non-uniformity of non-tax revenue, and a contradiction involved in grouping certain forms of revenue together. A proposal is offered to consider public revenue in its various phases, initially as a based in national wealth, then as mobilized in the form of budget revenue, redistributed for public needs, and then administered.

The 'Highway Effect' on Public Finance: Case of the Star Highway in the Philippines

In this study, we examine the impact of the STAR highway located in Batangas province, Philippines, on the public finance of the cities and municipalities through which it directly passes. Specifically, we exploit a unique, disaggregated dataset on tax (property and business taxes) as well as non-tax revenues (regulatory fees and user charges) of the cities and municipalities in the Batangas province. We find, based on our two specifications of a modified difference-in-difference model, that the STAR highway had a robust, statistically significant, and economically growing impact on business taxes. We also find that this so-called “highway effect” also extends to municipalities located in a neighboring province to Batangas. Furthermore, based on more careful inspection and robustness checks, it appears that the STAR highway had a significant impact not only on business taxes, but also on property taxes and regulatory fees. These findings support the widely held belief that infrastructure investments matter; further, our micro-case study suggests that infrastructure investments can indirectly boost tax and non-tax revenues through their power to reduce transportation costs and enhance the activity of firms and workers located along the highway.

Revenue Mobilization Effort of Special Category States: The Case of Assam in North-east India

Liberal resource transfer from the centre to economically backward states in India has ensured overcoming the mismatch between revenue generated and expenditure commitments of the states. From the point of view of long-term fiscal sustainability of states, however, greater effort to generate enough resources as per the potential of individual states is important, which makes the issue of revenue effort significant. Based on secondary data, this article is an attempt to analyze revenue mobilization efforts of the Government of Assam during 1991–2010. By examining the issues of arrears of uncollected tax and non-tax revenue, cost of collection of different taxes and duties, and cost recovery of different services, the study confirms low-revenue efforts on the part of the state government. The time series regression analysis between ‘per-capita own tax revenue’ and ‘per capita GSDP of the state’ and ‘per-capita revenue expenditure of the state in the previous year’ also confirms low-revenue efforts, necessitating the need of extra tax effort on the part of the state government. JEL Classification: H20, H27, C4

Local Government Debt in China: Implications for Reform

Since the 1994 fiscal reforms, China's national public finances have been in a strong position, but public finances of local governments (including provincial, city and county governments) have been always under stress. This is because local governments in China are responsible for financing the provision of basic economic and social services, as well as for urban infrastructure, but they have limited access to tax revenues, have no power to introduce new taxes or to increase rates of existing taxes, and are prohibited under the 1994 Budget Law from borrowing. Consequently, local governments are heavily dependent on non-tax revenues and fiscal transfers from the central government. In spite of the prohibition on borrowing, most local governments have been borrowing informally for many years and the central government has ignored this breach of the Budget Law. Now the size of local government borrowing has reached levels that are causing concerns for the sustainability of local public finances and the stability of the Chinese banking system. This situation raises many policy issues, some requiring urgent policy interventions and other requiring medium-term policy responses. Thus, there is a need for broadening provincial powers over taxation, reforming intergovernmental fiscal transfers, and formally recognizing provincial borrowing powers. However, the focus of this paper is on the incidence of local debt on provincial and sub-provincial public finances, an aspect of local debt that has not attracted sufficient attention in the literature. The concentration of local debt and contingent liabilities at sub-provincial levels and the new annual limit imposed by the State Council on local debt in 2015 are discussed. Lessons learned from Australia's experience in relation to the management of subnational borrowing are also discussed, as these appear to be highly relevant to China's current situation.

Nontaxation and representation: the fiscal foundations of political stability

1. Introduction 2. Taxation leads to instability, not representation 3. Nontax revenue lowers taxation and increases spending 4. Nontax revenue (therefore) leads to stability 5. This happens at subnational levels of governments too 6. Conclusions and implications.

Finance commission of India’s assessments: a political economy contention between expectations and outcomes

ABSTRACTWe explore the normative fiscal assessments of the Finance Commission (FC) of India, and realisation of fiscal policy with regard to Central Finances over the period 1990–2012. We employ the Theil’s inequality coefficient to investigate the magnitude of assessment errors and its partitioning in to bias, slope and random components. Furthermore, this article also evaluates the efficiency, biasedness and persistence of forecast errors. The robustness of the efficiency results are confirmed with the application of maximum entropy bootstrap. The objective of this study is to examine the structural basis on which FCs make their awards rather than examining the predictability of the forecasts. The story of FC’s assessments reflects an interesting political economy theatre of contention between aspirations and outcomes. Our key findings are as follows: First, source of errors for assessments of tax revenue, nontax revenue, interest payments, defence revenue expenditure, plan revenue expenditure and fiscal deficit is principally due to random component. However, the errors in the remaining economic parameters originate due to systematic components i.e. mean and slope errors. Second, the expenditure side predictability is lower than the revenue side predictability.

Local government finance: challenges in revenue-raising at the Municipal Corporation of Delhi

The main objective of this paper is to examine the extent to which the capital city of Delhi has gained financial autonomy over the years. In order to better understand its progress, the paper compares the periods before and after the submission of the Third State Finance Commission Report of Delhi. The main findings suggest there have been some efforts to reduce reliance on transfers from upper tiers of government and to strengthen ‘own revenues’ atthe Municipal Corporation of Delhi (MCD). A greater diversification of tax and non-tax revenue sources is responsible for this improvement. In the second period, other tax sources such as corporation tax and electricity tax gained in importance. Non-tax revenues were also strengthened by higher collection of certain components such as conversion charges. However, own revenues have been inadequate to meet growing expenditure requirements, resulting in high revenue expenditure gaps. Further, the growth in Gross State Domestic Product (GSDP has not led to a rise in own revenues for MCD.Rather, the paper finds that higher GSDP and its tertiary sector components are associated with higher expenditures in MCD. As far as local revenues are concerned, higher GSDP is associated with higher transfers, but has no discernible impact on own revenues.

Remittances and Democratization

Do remittances stabilize autocracies? Remittances—money sent by foreign workers to individuals in their home country—differ from other sources of external non-tax revenue, such as foreign aid, because they accrue directly to individuals and thus raise the incomes of households. We argue that remittances increase the likelihood of democratic transition by undermining electoral support for autocratic incumbents in party-based regimes. Remittances therefore make voters less dependent on state transfers. As a result, autocracies that rely heavily on the broad-based distribution of spoils for their survival, namely party-based regimes, should prove especially vulnerable to increases in remittances. Evidence consistent with this argument suggests that remittances promote democratization in some dictatorships.

Implementation of Nature Tourism Use Regulations in Order to Development of Tourism Governance in Bunaken National Park

Utilization of nature tourism in Bunaken National Park (BNP) with some uniqueness in it and has lasted a long time tend to uncontrolled activities because there are provisions of nature tourism use regulationsthat have not been fully implemented. This study aims to evaluate the implementation of nature tourism use regulations within development of tourism governance in BNP. Implementation of nature tourism use regulations by analyzing the contents of the text regulations to see the adequacy of the content, the implementation of the regulations by implementing and target groups, and the mechanism of stakeholder relations in the implementation ofregulations. The research conducted at BNP from July to October 2014. The data was collected through observation, interviews, and literature studies. Data and information were then analyzed using content analysis and qualitative descriptive analysis. The results adequacy of the contents and functions, nature tourism use regulations namely nature tourismconsession and the type and rates of non-tax revenues (use of environmental services nature tourism) met the requirements for regulating and controlling the behavior of stakeholders. But the implementation is not received a positive response from the implementing rules and target group. Mechanism of stakeholder relations in the implementation of nature tourismuse regulations needs to be managed so that it does not lead to a sharper conflict but can create complementary and cooperative relations.

Introduction to Special Issue on the Property Tax and the Financing of K–12 Education

reschovsky@lafollette.wisc.edu The property tax is the mainstay of local K–12 education revenue. Public schools derive over 80 percent of their local own-source revenue from the property tax (Reschovsky 2014). At the same time, nearly half of total property tax dollars collected in the United States is used to finance public elementary and secondary education (U.S. Census Bureau 2013, 2014). This close link between property taxation and school finance is one motivation for this special issue. Another motivation is the state and local fiscal aftermath of the Great Recession. Over the past few years the financing of public elementary and secondary education has become particularly challenging. In real per pupil terms, total revenues devoted to public education fell by 6.2 percent between the 2008–09 and 2011–12 school years.2 Although comprehensive revenue data are not yet available for the most recent years, existing evidence points to a continued decline in financial support for public education. Data from the U.S. Census Bureau’s Quarterly Summary of State and Local Tax Revenue indicate that per capita real local government property tax revenues (for school and non-school purposes) declined by 3 percent between fiscal years 2011 and 2013 (Collins and Langley 2014). And a survey conducted by the Center on Budget and Policy Priorities found that in 33 states, real

So Slow to Change: The Limited Growth of Nontax Revenues in Public Education Finance, 1991–2010

We examine changes in the use of nontax revenues for education finance from 1991 to 2010. Beyond the summary of usage over time, we ask whether nontraditional revenues like fees accentuate or mitigate the impact of downturns. More generally, we examine the extent to which school districts have responded to fiscal pressures by turning to nontax revenues. We also document the extent to which the use of nontax revenues varies across districts according to student poverty status. We show that alternative revenues continue to be a small source of local revenues and have increased quite little since the early 1990s. There was at most a minimal shift to nontax revenues in downturns, though there is evidence of greater use of these revenues among school districts facing more permanent fiscal pressures like tax limits. Differential access to fee revenues and other alternative revenues during downturns may slightly accentuate inequities in K–12 education spending.

THE IMPLICATION OF REFORESTATION FUND AND FOREST RESOURCE PROVISION TARIFF CHANGES ON PROFIT OF FOREST CONCESSIONAIRE AND NON-TAX STATE REVENUE: CASE STUDY OF PRODUCTION NATURAL FOREST IN EAST KALIMANTAN, INDONESIA

The decline of natural forest timber production has suppressed non-tax revenues (PNBP) of forestry sector. To anticipate further decrease in PNBP the government has been trying to raise tariffs of PSDH and DR. This research aims to study the implications of DR and PSDH tariff increases on profits of forest concessionaires and PNBP of forestry sector, and the potential use of logging waste as an additional source of PNBP. The data collected include: 1) the cost of forest management; 2) the price of logs and 3) logging waste. Data of forest management cost and log price were obtained from the documents and interviews with forest managers, while logging waste data was obtained by measuring in the field. The results of the study reveal that the increases in DR and PSDH tariffs simultaneously would cause the profit of company decreased by 22.3%, while the PNBP increased by 29.7%. The study suggest: 1) the policy on increasing DR tariff may be directly applied, while the pricing of logs at the landing site should be based on a rational determination method and 2) increases in DR and PSDH tariffs need to consider the amount of logging waste in the forest.