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dc.contributor.authorDejene Mamo, Bekana
dc.coverage.spatialEthiopiaen
dc.date.accessioned2020-11-12T09:48:54Z
dc.date.available2020-11-12T09:48:54Z
dc.date.issued2020-11-09
dc.identifier.citationBekana, D. M. (2020) The Impact of Intergovernmental Transfers on Fiscal Behaviour of Local Governments in Ethiopia, ATAP Working Paper 19, Brighton, IDSen
dc.identifier.isbn978-1-78118-713-5
dc.identifier.urihttps://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/15770
dc.description.abstractThis paper examines the effect of intergovernmental fiscal transfers on the fiscal behaviour of local governments in Ethiopia for the period 2004-2018. The empirical findings suggest that central government grants bolster state-level employment and expenditure. However, grants from the central government to states do not crowd out state-level revenue collection. Hence, this paper argues that fiscal decentralisation in Ethiopia has mostly, at least in theory, taken the form of devolution of the power to tax and spend public money. However, on average state-level revenue can only finance up to 26 per cent of their annual expenditure. As a result, fiscal federalism in Ethiopia appears to be a form of delegation of spending responsibilities. It has to be considered in the context of a decentralised tax system, but with a transfer scheme and political hierarchy. The results are found to be robust to alternative econometric estimation techniques.en
dc.language.isoenen
dc.publisherIDSen
dc.relation.ispartofseriesATAP Working Paper;19
dc.rights.urihttp://creativecommons.org/licenses/by-nc/4.0/en
dc.subjectEconomic Developmenten
dc.subjectFinanceen
dc.subjectGovernanceen
dc.titleThe Impact of Intergovernmental Transfers on Fiscal Behaviour of Local Governments in Ethiopiaen
dc.typeSeries paper (non-IDS)en
dc.rights.holderInstitute of Development Studies 2020en
dc.identifier.teamGovernanceen
dc.identifier.doi10.19088/ICTD.2020.001
rioxxterms.funderDefault funderen
rioxxterms.identifier.projectInternational Centre for Tax and Development (ICTD)en
rioxxterms.versionVoRen
rioxxterms.versionofrecord10.19088/ICTD.2020.001en
rioxxterms.funder.projectd0494d8c-1354-478a-b0b6-0ae4dd9cf717en


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