Decentralization of infrastructure responsibility to subnational governments and the immense needs of infrastructure financing argue for expanding subnational borrowing responsibly. India, Indonesia, the People's Republic of China, and the Philippines embarked on developing their subnational debt market at differing paces and progresses. The transition to market-based financing is path dependent, requiring sequencing of reforms. Moral hazard is inherent in subnational borrowing for both borrowers and lenders. Subnational borrowing also intertwines with the intergovernmental fiscal system, which prescribes the division of spending, revenues, and deficit financing among tiers of government. Linking borrowing to debt-service revenues and allowing fiscal space for subnational government borrowing are paramount. The challenges facing subnational governments from COVID-19 are similar to those from other macroeconomic shocks. A long-term view is required as to the allocation of fiscal space between sovereign and subsovereign. Financial transparency is key as markets need to digest comprehensive information to appropriately price risks.
We develop a model of property taxation and characterize equilibria under three alternative taxation regimes often used in the public finance literature: decentralized taxation, centralized taxation, and “rent seeking” regimes. We show that decentralized taxation results in inefficiently high tax rates, whereas centralized taxation yields a common optimal tax rate, and tax rates in the rent-seeking regime can be either inefficiently high or low. We quantify the effects of switching from the observed tax system to the three regimes for Japan and Germany. The decentralized or rent-seeking regime best describes the Japanese tax system, whereas the centralized regime does so for Germany. We also quantify the welfare effects of regime changes.
Introduction. Modern pandemic threats, military-political tensions and conflicts, foreign economic risks, trade wars, financial imbalances encourage the EU countries to group and agglomerate financial potentials in the vertical and horizontal planes. There is a need to study the paradox of what role in this agglomeration is played by the mastery of using the principles of fiscal federalism, tested by a number of both unitary states and federal republics of the European continent. The purpose of the article is to monitor the main determinants of fiscal federalism in increasing the financial potential of the member states of the European Union. Method (methodology). In the course of the research, the following methods were used: dialectical, correlational, generalization, comparison, system analysis, observation, induction and deduction. The results. The article highlights the importance and place of fiscal federalism in the architecture of the financial policy of the European Union. Pragmatic aspects of financing public services in the member states of the European Union have been studied. This made it possible to identify active recipients in the field of attracting financial resources to ensure the priority needs of economic development. It is emphasized that the functional direction of general public spending in the European Union was aimed more at social protection and health care, and to a lesser extent at environmental protection and development of the housing and communal sphere. It has been established that most of the member states of the European Union combine the principles of centralization, federalism, and decentralization (in most cases) in their fiscal doctrine, but there are also clear systems of classical fiscal federalism (Germany, Switzerland). The European approach emphasizes that a secondary effect of globalization is excessive tax optimization, because the functioning of the integrated market makes tax evasion more attractive. An assessment of the influence of key parameters of fiscal federalism on the functioning of centralized and decentralized models of financial policy was carried out. This made it possible to identify the level of influence of the determinants of fiscal federalism on the relevant model through the prism of distinct factors. It is summarized that the use of determinants of fiscal federalism in the financial policy of the European Union is able to strengthen the budgetary and tax effects, which in the final (transformed) vector will lead to a strengthening of the economy and improvement of social standards both in the member states of the union and in individual municipal entities.
Under the fiscal decentralization system, China has implemented a central and provincial management system. Colleges and universities are divided into central and local colleges and universities. At present, local higher education is facing the dilemma of insufficient investment. The reasons are mainly reflected in three aspects: first, the inherent defects of China's fiscal decentralization system restrict the attention of local governments to the higher education needs of local residents; Second, the speed of local economic development can not keep up with the rapid development of the scale of local higher education, resulting in the lack of financial resources for local governments to invest in higher education;, The third is the game of local governments in the direction of financial investment under the fiscal decentralization system, which leads to the reluctance of local governments to invest funds in the field of higher education. We believe that in order to alleviate the plight of insufficient investment in local higher education, we should promote the decentralization reform of higher education investment system; The local government should establish a scientific view of political achievements, improve the understanding of the importance of higher education, and speed up the financial allocation to local colleges and universities; Mobilize non-public resources to invest in local higher education and broaden the financing channels of local colleges and universities.
In the article the state, trends and features of financing environmental measures by local budgets in Ukraine in order to justify the possibility of increasing the effectiveness of local communities expenditures on environmental protection were investigated. To this end, an analysis of local government expenditures, including budget environmental programs, the structure and dynamics of environmental tax revenues to the general and special funds of state and local budgets from 2010 through 2020 were analyzed. The distribution of environmental expenditures between state and local budgets, the financing mechanism for environmental protection and the mechanism of providing the local environmental fund have been studied. According to the results of the analysis, it was shown that in the conditions of decentralization, the volume of local financing of environmental measures has increased. However, a significant part (over 50%) of environmental funds was directed to non-priority goals and activities. The share of expenditures of the Environmental Protection Fund for the implementation of definitely environmental measures was low. This does not contribute to solving current environmental problems and does not increase the capacity of local budgets in terms of environmental expenditures. Significant (over 60%) centralization of the environmental tax revenues in the state budget creates unfavorable conditions for the ecological sustainability of some regions. It was established that the main function of the environmental tax – compensatory – is not fully fulfilled. The environmental tax was mainly directed to the implementation of the general functions of the state and territorial communities. In order to increase the efficiency of local budget expenditures on environmental protection, it is necessary to develop criteria for assessing the impact of environmental measures, normative definition of mandatory environmental effects in budget programs and strengthen state financial control over the targeted use of local budget funds.
Increased administrative discretion for human resource and financial management is commonly seen as a key component of efficient service delivery. However, the directive attitude of some central government officials in Tanzania undermines the administrative discretion of local councils to implement approved local plans and budgets. Using a case study of two local councils in Tanzania, this study investigated the influence of decentralization on administrative discretion and decision space. The findings show that local councils have little administrative discretion and decision space over human resources, financial management, and service delivery. The study calls for a comprehensive review of decentralization policies and local government legislation to address the allocation of powers and decision space of the institutional capacity of local councils to provide local services. Their roles and responsibilities should also be specified in the national constitution to safeguard them from the encroaching “directive culture” of central government officials.
Since 1946, Indonesia has adopted a decentralization policy that impacts the transfer of authority to regulate and administer government affairs in the regions, followed by financing to manage these affairs. In a unitary state, the power source, both in terms of financial management and administrative power, rests with the central government. This study uses a descriptive qualitative method to explain the history of the development of authority and financial balance policies in Indonesia and the meaning of decentralization policies in Indonesia. Quantitative descriptive was used to analyze data regarding the implementation of regional government affairs, personnel expenditure ratios, comparison of central and regional expenditures, and other data related to burdens and revenues between the center and the regions. This study found that the central government has recognized regional independence through income sources managed by themselves and reduced transfer funds that aim to cover the lack of regional revenues. The provision of sources of revenue from the central government to the regions is not proportional to the ratio of the burden given. The results of this study indicate that the load is inversely related to the budgetary capacity between the government and local governments. The imbalance between the workload and the source of revenue received by the region is the low ability of the region to provide basic services that are the authority.
Background: The concept of devolution has always presented significant controversy in African unitary states. It is often viewed with inherent suspicion and skepticism based on the lack of mutual trust between the people and the government. While proponents see it as a form of empowerment, resistant groups in society view the decentralization of government powers and responsibilities as a gateway to success. Despite the devolution agenda being a major component of local governance in the Zimbabwean Constitution of 2013, it would not be practically implemented until the new dispensation that rose into power in 2018. However, the coming in of the COVID-19 pandemic has significantly marred the take-off of devolution implementation in Zimbabwe. Whilst COVID-19 cases continue to escalate on the globe, African countries continue to battle not only with the second wave of the pandemic but also with the new COVID-19 variants. Already fragile economies of these countries, the governments were forced to prioritize the national budgets in response to the pandemic; consequently, other social and developmental issues were left behind. Objective: This study discusses the contemporary status of devolution in Zimbabwe to ascertain the extent of implementation; provide supportive legislation for devolution structures through recommendations; analyze devolution disbursements from 2019 before COVID-19 to date; assess the local authorities’ initial requests versus the disbursements in 2019 and 2020. Method: The researcher carried out a desk review and followed the principles of case study design by analyzing financial statements, reports and data coming in from the Councils and relevant Government ministries. The meaning was also derived by critically reviewing, organizing and interpreting related information from books and articles published in newspapers and journals. Result: Despite Section 264(1) of the Constitution providing for devolution of power to the three tiers of the Government, there is no supporting legislature in place as yet to actualize this key element. The Government Budgetary Allocation of 5% is not meeting local authority demands. Conclusion: The onset of the COVID-19 pandemic in late 2019 reduced the pace of the devolution process because the funds were channeled to fight against the virus. If properly practiced, devolution may be one of the solutions to the development of the Zimbabwean economy since the devolution program is largely founded on the principle of empowering provincial government councils and Local Authorities to spearhead economic and social development projects in their areas by leveraging on local resources. It may also solve issues of corruption in many local councils in Zimbabwe by improving accountability mechanisms, especially where sub governments are permitted to progressively compete with each other to establish innovative ways of delivering public services efficiently and inexpensively. Implications: The findings imply that the Government policies can affect the social and economic well-being of citizens, however, the COVID-19 pandemic has far outweighing impacts. Secondly, the coronavirus outbreak has proved how much the Government of Zimbabwe is ill-prepared to deal with a pandemic of this dimension. Policymakers should ensure that finances are set in the national budget for unseen events so as not to derail other Government projects. Originality: This paper is original and not sent anywhere for publication.
The article considers the relationship between modern processes of budget decentralization and macro-financial policy of Ukraine. The focus on deepening decentralization processes in Ukraine remains unchanged. This emphasizes the use of the State Strategy for Regional Development for 2021-2027. The theoretical foundations of budget decentralization were introduced in the works of C. Tibet, W. Oates, E. Bracco, W. Tanzi, A. Aristovnik and other Western researchers. C. Oates defined the decentralization of fiscal powers as a benefit that could lead to a reduction in the size of the central government. This means reducing the tax burden by increasing competition from tax jurisdictions. For quantification at the level of an individual economy, it is possible to use the index of fiscal decentralization. This index consists of two sub-indices: the self-sufficiency index and the index of importance of subnational budgets. The OECD Fiscal Decentralization Database can be used as a source of information on fiscal decentralization. A retrospective analysis of economists has shown an increase in the index of fiscal decentralization and an improvement in the state of subnational entities in a favorable macroeconomic situation. On the contrary, the crisis worsens the conditions of subnational entities and is accompanied by a decrease in this index. With the beginning of the pandemic, there was a crisis situation regarding the macroeconomic support of further decentralization processes. Long-term social problems are deepening: demographic negatives, increasing external outflow of labor resources, shrinking the country's economy, progressive deindustrialization, high resource intensity of production, in particular, low energy efficiency, growing debt burden. The most destabilizing role is played by military events in the east of the country. High regional disproportion logically leads to a violation of the single economic space of Ukraine. The size of the budget deficit and public debt is increasing. The crisis has a significant impact on all macroeconomic processes, in particular, on the macro-financial stimulation of budget decentralization processes. The urgent task is to establish effective coordination of fiscal and monetary policy, as well as increase the capacity to attract loan financing. Extreme conditions force us to temporarily give up strategic intentions as such, which are not urgent. Public-private partnership can get another chance to become an effective mechanism of social interaction. Increasing competition between budgetary institutions and private institutions in these areas has the potential to increase the quantity and quality of public services.
Local governments in the Slovak Republic are important in public administration and form an important part of the public sector, as they provide various public services. Until 1990, all public services were provided only by the state. The reform of public administration began in 1990 with the decentralization of competencies. Several competencies were transferred to local governments from the state, and thus municipalities began to provide public services that the state previously provided. Registry offices were the first to be acquired by local governments from the state. This study aimed to characterize the transfer of competencies and their financing from state administration to local government using the example of registry offices in the Slovak Republic. In the paper, we evaluated the financing of this competency from 2007 to 2018 at the level of individual regions of the Slovak Republic. The results of the analysis and testing of hypotheses indicated that a higher number of inhabitants in individual regions did not affect the number of actions at these offices, despite the fact that the main role of the registry office is to keep registry books, in which events, such as births, weddings, and deaths, are registered.
From a public finance point of view, achieving sustainable development hinges on two critical factors: the subnational implementation of public policies and the efficient allocation of resources across regions through vertical intergovernmental transfers. We introduce a framework that links these two mechanisms for analyzing the impact of reallocating federal transfers in the presence of regional heterogeneity from development indicators, budget sizes, expenditure returns, and long-term structural factors. Our study focuses on the case of Mexico and its 32 states. Using an agent-based computational model, we estimate the development gaps that will remain by the year 2030, and characterize their sensitivity to changes in the states’ budget sizes. Then, we estimate the optimal distribution of federal transfers to minimize these gaps. Crucially, these distributions depend on the specific development objectives set by the national government, and by various interdependencies between the heterogeneous qualities of the states. This work sheds new light on the complex problem of budgeting for the Sustainable Development Goals at the subnational level, and it is especially relevant for the study of fiscal decentralization from the expenditure point of view.
The formation of balanced budgets and increasing the financial potential of communities, a clear division of powers on the principle of subsidiarity, improving the efficiency of financial resources and stimulating community development have determined the relevance of Ukraine’s implementation of best practices in decentralization. The aim of the paper is to analyse the effectiveness of the decentralization process in Ukraine and assess the possibilities of financing the development of united territorial communities, identify the benefits of the Polish experience and determine the areas for their implementation in Ukraine. During the research, the methods of logical generalization and synthesis, comparative analysis, rating and integrated assessment of the financial capacity of the communities in Lviv region of Ukraine were used. Based on the study of foreign, in particular Polish, experience of decentralization, the key reasons for its insufficient effectiveness in Ukraine have been identified. The priority directions of the state policy are proposed and substantiated, and their implementation will allow to increase the efficiency of decentralization in Ukraine.
The study's main objective was assessing the practices and challenges of fiscal decentralization at Bedelle woreda, with particular reference to basic selected sectors (Education, Agriculture, Health, Water, and Road). According to the nature of this study, a descriptive research design with qualitative and quantitative methods was adopted. The population of the study was government employees working in selected sectors of Bedelle Woreda. The census sampling technique was used in this research because the study population was manageable. To this effect, 128 participants were selected using a census sampling size. Besides this, Woreda (District) Finance and Economic Development and Woreda Revenue Office Authority officials were purposely selected to conduct interviews. The data-gathering instruments were questionnaires, key informant interviews, and document analyses. Descriptive and inferential statistical techniques were used for data analysis. In descriptive using frequencies and percentages and inferential statistics, multiple linear regression was used to assess relationships between the independent variables (legal framework, revenue, expenditure, employee experience, employee training, management commitment, and fiscal transfers) and the dependent variable (fiscal decentralization). The findings show that internal revenue raising and utilization in the selected sectors was very low. Besides, lack of autonomy in expenditure decisions of sectors, insufficient capacity building, the extent of fiscal transfer, and financial resource were the major challenges in the study area. Overall, the regression analysis revealed that, Revenue raising (β = -0.164, p<0.05), Expenditure decision (β = 0.236, p<0.05), Employee experience (β = 0.525, p<0.05), and Commitment of management (β = 0.172, p<0.05), all have statistically significant and positive effect on fiscal decentralization. Based on the study's findings, it is recommended that existing legal frameworks be modified to enable the sectors to use their budget in line with their action plan to generate and utilize sufficient revenues. Special emphasis should be given to an employee's capacity building, independence of planning and budgeting, and clear autonomy of expenditure assignments. Inter-governmental fiscal relations should also be planned to reduce the horizontal imbalances observed at selected sectors of the woreda under study.
The fundamental problem confronting most local authorities, especially those managing cities in developing countries, is the widening gap between the availability of financial resources and municipal spending needs. One of the main reasons for this increasing fiscal gap is the rapid growth of urban populations, which creates an ever-increasing demand for public services, new public infrastructure, and its maintenance. Most cities in developing countries depend mostly on central government transfers, with lesser revenues derived from property taxation and service charges. The main aim of this study is to review the scholarly published documents regarding the responsible governing system of the local government in the developing economy and to observe the challenges to them to manage fiscal imbalances. Looking at the practice of fiscal federalism and economic decentralization, there is no uniformity in the global experience. Developed countries are at the forefront of this agenda while developing countries have different experiences. It is important to find the right path with the appropriate solution to the problem seen from the international experiment and move forward accordingly. It is important not only to make laws but also to achieve prosperous prosperity through their proper use and for that it is important to understand that the implementation of the law should be done in the right spirit.
Local authorities in Madagascar do not have yet a budget simulation model. Budgetary rationalization makes it possible to effectively predict and manage budget implementation. However, the local finance budget is always based on an ex-ante situation without taking into account the economic, political, the behaviour of the elected official, the electoral cycle, and performance indicators. Therefore, a numerical simulation (use in many developed countries) from computer tools or the use of artificial intelligence or AI that can effectively predict a local finance budget. Predictive analyses help to better identify the fundamental characteristics of the budget elements, in order to model them and anticipate the executions as best as possible. Rather, it is a practice that relies on statistical tools, but also on the search for correlation and regressions that are methods used to discover functional models, connecting a variable to be explained and a set of explanatory variables. The prediction of a primitive budget then consists of using the different models from a simulation in Prex-B-developed software for the budget of local finances or decentralized territorial collectivities.
Проблематика роботи відповідає завданням адміністративної реформи, найважливішим результатом якої повинні бути докорінні зміни в управлінні територіальними громадами, пов’язані з отриманням нових можливостей розвитку й задоволенням потреб місцевих спільнот. Оскільки місцевий бюджет серед інститутів місцевих фінансів відіграє основну роль у забезпеченні виконання функцій і завдань місцевими органами, то упродовж останніх років було приділено багато уваги посиленню його впливу на економіку і соціальну сферу як інструменту фіскальної діяльності, забезпечення громадських послуг і економічного зростання. Ґрунтовнішого наукового осмислення та практичного вирішення потребують питання власних доходів місцевих бюджетів з позицій організаційно-структурних аспектів з метою забезпечення повноважень органів місцевого самоврядування вагомими джерелами фінансування. Питання фінансового забезпечення виконання органами місцевого самоврядування видаткових повноважень є особливо актуальним.
The formation of local self-government in the post-Soviet space takes place in difficult economic and political conditions under the influence of various, often directed in the opposite way, factors. For Russia, the experience of forming a new institution for all post-Soviet states is of significant practical importance since it faces many difficulties in its course. Within the framework of the invariant of the transition from centralized management to decentralization, the variant of this process in the Central Asian countries is more relevant for our country since it is carried out under conditions largely similar to those in Russia. In this regard, the purpose of this article is to highlight the key historical, economic and political factors of local self-government formation in the Central Asian states in order to deepen the understanding of the ways and possibilities of creating a sufficiently autonomous local level of public power in systems that have long operated within the framework of strict centralization and seek to form a new organizational structure and use new management mechanisms and tools to improve the efficiency of the process and achieve the main systemic goal of the modern state – improving the quality of life in the country. The relevance of the study of these processes is beyond doubt due to the need to understand the role and place of self-government in the structure of public power in accordance with the amendments made in 2020 to the Constitution of the Russian Federation. The study of options for local-level opportunities in a comparative perspective when analyzing public authorities in Central Asian countries also opens the way to new solutions to Russian problems.
The unification of South Korea and North Korea is a plausible idea yet it requires a comprehensive preparation in advance. As a method to achieve fiscal efficiency in public services, decentralization theory1 is consistently applied. However, the current literature and political reality argue that decentralization does not always hold its efficiency. Therefore, this paper focuses on finding an ideal education finance model for post-unification Korea by studying how one country’s academic/economic status is related to their education finance model. This paper conducts the OLS linear regression analysis with 40 OECD and its partner countries’ information on GDP per capita, Gini Index, PISA mathematics score, and the form of education finance system. The main findings of this research are that the political and fiscal decentralization are different ideas, and fiscal decentralization does not always hold its efficiency as the decentralization theory states. Among the types of decentralization, the optimal education finance model for academic and economic improvement is deconcentration – which is a combination of fiscal centralization and political, or administrative, decentralization to empower regional autonomy.
The subject of the study is the processes of budget decentralization in the management of public finances, as well as mathematical methods and models for implementing the concept of hard budget restrictions in order to create conditions for the self-development of administrative-territorial units. The aim of the study is to develop adaptive economic and mathematical models for implementing the strategy of hard budget constraints implemented in the process of inter-budget regulation. The relevance of the study is due to the fact that currently the subject of acute discussion in the scientific community is the self-development of administrative-territorial entities and increasing their financial independence. In this regard, the focus of economic research is focused on the problems of budgetary decentralization as an engine of economic development, as well as the related topics of the use of mathematical tools for modeling decision support in this area. The created models are subject to the requirements of learnability, adaptability to changing conditions of environmental influences, and the ability to operate not only with quantitative, but also with qualitatively defined characteristics. The problem of mathematical modeling is solved by applying an interdisciplinary synthesis of the theories of stochastic automata operating in random environments and fuzzy logic. The proposed synthesis of theoretical and methodological devices is the novelty of the research. As a result , an economic and mathematical model of a fuzzy automaton is constructed for determining and quantifying the values of the norms for the distribution of tax revenues between budgets of different levels of the budget system. A fuzzy automaton interacts with a simulation model that reproduces budget flows and quantifies the decisions made by the automaton model. The practical significance of the research results lies in the program implementation of the developed models and their inclusion in the public finance management circuit. In the future , it is planned to create a mathematical model of the collective behavior of fuzzy automata models, the interaction of which solves the problem of coordinating the interests of budgets of different levels of the hierarchy in the distribution of tax revenues.
The research is to prove that there was a fiscal illusion in district government spending in East Java in 2016-2018, and to prove that the fiscal illusion that occurred in government spending had an influence on the economic growth of each district. In fiscal decentralization in the era of regional autonomy, there is a phenomenon that each regional government still depends on financing activities from government transfer funds rather than receiving local revenue to finance regional expenditures. Even though government spending has increased every year, it is not in balance with economic growth. In this study it can be proven that there is a fiscal illusion in district government spending in East Java 2016-2018, this fiscal illusion affects the economic growth of each region. To increase economic growth and reduce regional unemployment rates, it is necessary to make efforts to increase capacity and fiscal independence as well as increase the labor force participation rate.Keywords: fiscal illusion, government spending, local government, economic growth, East Java.
Mateus Ferreira de Almeida Lima, Francisco das Chagas Bezerra Neto, José Cândido da Silva Nóbrega, Auzenir de Oliveira Abrantes Monteiro · 6 authors
During the passage of time, it is necessary for a legal system to introduce structural reforms, given the maximum effectiveness of Law. And, among the main reforms proposed to the Brazilian order, there is the tax reform, represented, above all, by the PEC 45/2019. Several points are innovative, such as the adoption of the Value Added Tax (VAT) - renamed Tax on Goods and Services (IBS) - on consumer goods, in the three federal spheres, the basis of which comes from five other taxes: Tax on Industrialized Products ( IPI), Tax on Circulation of Goods and Services (ICMS), Tax on Services (ISS), Contribution to the Financing of Social Security (Cofins) and Social Integration Program (PIS); having specific rates for each federative entity and abolition of taxes such as the Tax on Financial Operations (IOF). However, would the creation or abolition of these taxes be positive or negative for the fiscal decentralization proposed in the 1988 Charter? An unsolvable dichotomy. Despite the selective rates for the three federative entities (Union, States and Municipalities), the Reform intends to create a central body, whose character would be to inspect such rates according to the total. There is, therefore, a paradox: between one and triune. Based on such affirmative assumptions, this article will have an exploratory character, with deduction as a method and data collection extracted from documents, bibliography and data taken from administrative bodies.
The purpose of this study is to determine the differences in the level of regional financial independence of the Trenggalek Regency Government for the period 2014-2016 and the period 2017-2019. This research uses comparative research. The type of data in this study is secondary data with documentation data collection techniques. The data source used is sourced from the Directorate General of Fiscal Balance's website at the Central and Regional Government Offices (DJPK). The data analysis technique used in this research is the descriptive analysis technique. The type of data in this study is secondary data with documentation data collection techniques. The results show that the ratio level of the degree of fiscal decentralization in Trenggalek was in a low category. It happened in the period 2014-2016 and the period 2017-2019. The value of regional financial dependency ratios is in the high category in the 2014-2016 and 2017-2019 periods. The value of the regional financial independence ratio is in the poor category in the 2014-2016 period, and the 2017-2019 period is in the low and medium category. The effectiveness ratio's value in the practical category in the 2014-2016 period and the 2017-2019 period.
The purpose of this research is to find out the effect of remaining more budget financing and fiscal decentralization on capital expenditure in districts/cities in the Region West Java period of 2015-2019. This research used secondary data in the form from Realized Local Government Budget obtained from Directorate General of Regional Fiscal Balance (DJPK).The population of this research is the report on government budget realization of districts/cities in West Java period of 2015-2019. All data is collected by sampling quota. The sample amounted to 105 financia report data. The analytical methods used in this research are the descriptive and statistic method of regression analysis of data panels including testing of hypotheses through F test, t-test and coefficient of determination (R2). The test model selection in this research is Fixed Effect. Based on the results of this research shows that remaining more budget financing and fiscal decentralization are simultaneously affecting capital expenditure. Partial remaining more budget financing variables and fiscal decentralization have a positive and significant impact on capital expenditure.Keywords: Remaining More Budget Financing, Fiscal Decentralization, , Capital Expenditure.
The last few years have been ones of intense debate in the Brazilian National Congress about the Basic Education Fund (Fundeb) seeking ways for this temporary mechanism to become permanent and improved. Debates on privatization of education and on tax justice are key elements in these discussions. This article sets out to analyze discussions around the amount of financing for Fundeb, funding sources, federal decentralization, and privatization proposals, presenting the active interest groups advocating on different sides of the agenda.