Strengthening Subnational Public Finance

Mexico's intergovernmental transfer system needs to reduce vertical imbalances and discretionary federal transfers. This note assesses Mexico's pending subnational fiscal reform agenda. Mexico is a federal country divided into 31 sovereig...

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Main Author: World Bank
Format: Policy Note
Language:English
en_US
Published: Washington, DC 2014
Subjects:
TAX
Online Access:http://documents.worldbank.org/curated/en/2013/04/17570562/strengthening-subnational-public-finance
http://hdl.handle.net/10986/16582
id okr-10986-16582
recordtype oai_dc
spelling okr-10986-165822021-04-23T14:03:30Z Strengthening Subnational Public Finance World Bank ACCOUNTING ADMINISTRATIVE REFORM AMOUNT OF DEBT BANK LOANS BANKING REGULATION BANKING REGULATIONS BASIC EDUCATION BORROWING BORROWING CAPACITY BORROWING COSTS BUDGET CONSTRAINT BUDGET CONSTRAINTS BUDGETARY EXPENDITURES COEFFICIENT OF VARIATION COMMERCIAL BANKS CREDIT RATINGS CREDIT RISK CREDIT RISK PREMIUM CURRENT EXPENDITURES DEBT DATA DEBT LEVELS DEBT OBLIGATIONS DEBT SERVICE DEBT SERVICE PAYMENT DISCRETIONARY FEDERAL TRANSFERS DUE DILIGENCE ECONOMIC ACTIVITY EFFICIENCY OF EXPENDITURES ELECTRICITY EXPENDITURE EXPENDITURE DECENTRALIZATION EXPENDITURE EFFICIENCY EXPENDITURE MANAGEMENT EXPENDITURE NEEDS EXPENDITURE REPORTING EXPENDITURE RESPONSIBILITIES FEDERAL ASSISTANCE FEDERAL COUNTRY FEDERAL DEBT FEDERAL DISTRICT FEDERAL EXPENDITURE FEDERAL GRANTS FEDERAL REVENUES FEDERAL TAX FEDERAL TRANSFER FEDERAL TRANSFER SYSTEM FINANCIAL ASSISTANCE FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL SUPPORT FISCAL ADJUSTMENT FISCAL BURDEN FISCAL DECENTRALIZATION FISCAL DISCIPLINE FISCAL FEDERALISM FISCAL TRANSPARENCY INCOME INCOME TAX INDEBTEDNESS INSTITUTIONAL FRAMEWORK INTERGOVERNMENTAL TRANSFER INTERNATIONAL STANDARDS KEY CHALLENGES LACK OF TRANSPARENCY LEGAL REFORM LEVEL OF GOVERNMENT LEVY LIABILITY LOAN LOCAL EXPENDITURES LOCAL GOVERNMENT LOCAL REVENUE LOCAL TAXES MARKET MECHANISMS MARKET PARTICIPANTS MATURITY MINISTRY OF FINANCE MISREPORTING MUNICIPAL LEVEL MUNICIPALITIES OIL PRICES PAYROLL COSTS POLICY REFORM POLITICAL ECONOMY POLITICAL ECONOMY FACTORS PRIVATE LENDERS PROPERTY TAX PROPERTY TAX COLLECTION PROPERTY TAXES PRUDENTIAL REGULATIONS PUBLIC PUBLIC CREDIT PUBLIC DEBT PUBLIC FINANCE PUBLIC FINANCE STATISTICS PUBLIC FINANCES PUBLIC REVENUE PUBLIC SECTOR PUBLIC SERVICES RECURRENT EXPENDITURES RESERVE RESERVE REQUIREMENTS RESERVES REVENUE MOBILIZATION REVENUE RATIO REVENUE SOURCE RISK MANAGEMENT SHORT-TERM DEBT SOCIAL SECURITY STATE EXPENDITURE STATE EXPENDITURES STATE GOVERNMENTS SUBNATIONAL SUBNATIONAL DEBT SUBNATIONAL ENTITIES SUBNATIONAL EXPENDITURE SUBNATIONAL EXPENDITURES SUBNATIONAL FISCAL REFORM SUBNATIONAL GOVERNMENTS TAX TAX ADMINISTRATION TAX AUTHORITY TAX BASE TAX COLLECTION TAX COLLECTIONS TAX EFFORT TAX EFFORTS TAX EVASION TAX POOL TAX RATE TAX REVENUE TAX REVENUES TAX RULES TECHNICAL ASSISTANCE TOTAL PUBLIC EXPENDITURE TOTAL PUBLIC EXPENDITURES TRANSPARENCY VOTERS Mexico's intergovernmental transfer system needs to reduce vertical imbalances and discretionary federal transfers. This note assesses Mexico's pending subnational fiscal reform agenda. Mexico is a federal country divided into 31 sovereign states and one federal district. Each state is composed of municipalities. The fiscal federalism framework in this three-tier government structure consists of the set of laws, rules, and institutions that allocate spending and tax responsibilities and of the transfers and institutional framework for the subnational debt. Mexico has made great progress in strengthening its fiscal federalism framework over the past 10 years, but there is room for improvement. The pending Mexican fiscal federalism reform should focus on decreasing the large vertical gaps that states face, increasing local revenue mobilization, increasing the transparency and effectiveness of local expenditures, and strengthening the subnational borrowing framework to improve states' fiscal discipline. A clearer distinction between federal and state expenditure responsibilities, especially in the basic education sector, could improve service delivery. A more transparent debt reporting is also needed to strengthen subnational fiscal discipline. 2014-01-17T17:38:28Z 2014-01-17T17:38:28Z 2013-04 http://documents.worldbank.org/curated/en/2013/04/17570562/strengthening-subnational-public-finance http://hdl.handle.net/10986/16582 English en_US Mexico policy note;no. 10 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Policy Note Economic & Sector Work Latin America & Caribbean Mexico
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTING
ADMINISTRATIVE REFORM
AMOUNT OF DEBT
BANK LOANS
BANKING REGULATION
BANKING REGULATIONS
BASIC EDUCATION
BORROWING
BORROWING CAPACITY
BORROWING COSTS
BUDGET CONSTRAINT
BUDGET CONSTRAINTS
BUDGETARY EXPENDITURES
COEFFICIENT OF VARIATION
COMMERCIAL BANKS
CREDIT RATINGS
CREDIT RISK
CREDIT RISK PREMIUM
CURRENT EXPENDITURES
DEBT DATA
DEBT LEVELS
DEBT OBLIGATIONS
DEBT SERVICE
DEBT SERVICE PAYMENT
DISCRETIONARY FEDERAL TRANSFERS
DUE DILIGENCE
ECONOMIC ACTIVITY
EFFICIENCY OF EXPENDITURES
ELECTRICITY
EXPENDITURE
EXPENDITURE DECENTRALIZATION
EXPENDITURE EFFICIENCY
EXPENDITURE MANAGEMENT
EXPENDITURE NEEDS
EXPENDITURE REPORTING
EXPENDITURE RESPONSIBILITIES
FEDERAL ASSISTANCE
FEDERAL COUNTRY
FEDERAL DEBT
FEDERAL DISTRICT
FEDERAL EXPENDITURE
FEDERAL GRANTS
FEDERAL REVENUES
FEDERAL TAX
FEDERAL TRANSFER
FEDERAL TRANSFER SYSTEM
FINANCIAL ASSISTANCE
FINANCIAL CRISIS
FINANCIAL DISTRESS
FINANCIAL INSTITUTIONS
FINANCIAL SUPPORT
FISCAL ADJUSTMENT
FISCAL BURDEN
FISCAL DECENTRALIZATION
FISCAL DISCIPLINE
FISCAL FEDERALISM
FISCAL TRANSPARENCY
INCOME
INCOME TAX
INDEBTEDNESS
INSTITUTIONAL FRAMEWORK
INTERGOVERNMENTAL TRANSFER
INTERNATIONAL STANDARDS
KEY CHALLENGES
LACK OF TRANSPARENCY
LEGAL REFORM
LEVEL OF GOVERNMENT
LEVY
LIABILITY
LOAN
LOCAL EXPENDITURES
LOCAL GOVERNMENT
LOCAL REVENUE
LOCAL TAXES
MARKET MECHANISMS
MARKET PARTICIPANTS
MATURITY
MINISTRY OF FINANCE
MISREPORTING
MUNICIPAL LEVEL
MUNICIPALITIES
OIL PRICES
PAYROLL COSTS
POLICY REFORM
POLITICAL ECONOMY
POLITICAL ECONOMY FACTORS
PRIVATE LENDERS
PROPERTY TAX
PROPERTY TAX COLLECTION
PROPERTY TAXES
PRUDENTIAL REGULATIONS
PUBLIC
PUBLIC CREDIT
PUBLIC DEBT
PUBLIC FINANCE
PUBLIC FINANCE STATISTICS
PUBLIC FINANCES
PUBLIC REVENUE
PUBLIC SECTOR
PUBLIC SERVICES
RECURRENT EXPENDITURES
RESERVE
RESERVE REQUIREMENTS
RESERVES
REVENUE MOBILIZATION
REVENUE RATIO
REVENUE SOURCE
RISK MANAGEMENT
SHORT-TERM DEBT
SOCIAL SECURITY
STATE EXPENDITURE
STATE EXPENDITURES
STATE GOVERNMENTS
SUBNATIONAL
SUBNATIONAL DEBT
SUBNATIONAL ENTITIES
SUBNATIONAL EXPENDITURE
SUBNATIONAL EXPENDITURES
SUBNATIONAL FISCAL REFORM
SUBNATIONAL GOVERNMENTS
TAX
TAX ADMINISTRATION
TAX AUTHORITY
TAX BASE
TAX COLLECTION
TAX COLLECTIONS
TAX EFFORT
TAX EFFORTS
TAX EVASION
TAX POOL
TAX RATE
TAX REVENUE
TAX REVENUES
TAX RULES
TECHNICAL ASSISTANCE
TOTAL PUBLIC EXPENDITURE
TOTAL PUBLIC EXPENDITURES
TRANSPARENCY
VOTERS
spellingShingle ACCOUNTING
ADMINISTRATIVE REFORM
AMOUNT OF DEBT
BANK LOANS
BANKING REGULATION
BANKING REGULATIONS
BASIC EDUCATION
BORROWING
BORROWING CAPACITY
BORROWING COSTS
BUDGET CONSTRAINT
BUDGET CONSTRAINTS
BUDGETARY EXPENDITURES
COEFFICIENT OF VARIATION
COMMERCIAL BANKS
CREDIT RATINGS
CREDIT RISK
CREDIT RISK PREMIUM
CURRENT EXPENDITURES
DEBT DATA
DEBT LEVELS
DEBT OBLIGATIONS
DEBT SERVICE
DEBT SERVICE PAYMENT
DISCRETIONARY FEDERAL TRANSFERS
DUE DILIGENCE
ECONOMIC ACTIVITY
EFFICIENCY OF EXPENDITURES
ELECTRICITY
EXPENDITURE
EXPENDITURE DECENTRALIZATION
EXPENDITURE EFFICIENCY
EXPENDITURE MANAGEMENT
EXPENDITURE NEEDS
EXPENDITURE REPORTING
EXPENDITURE RESPONSIBILITIES
FEDERAL ASSISTANCE
FEDERAL COUNTRY
FEDERAL DEBT
FEDERAL DISTRICT
FEDERAL EXPENDITURE
FEDERAL GRANTS
FEDERAL REVENUES
FEDERAL TAX
FEDERAL TRANSFER
FEDERAL TRANSFER SYSTEM
FINANCIAL ASSISTANCE
FINANCIAL CRISIS
FINANCIAL DISTRESS
FINANCIAL INSTITUTIONS
FINANCIAL SUPPORT
FISCAL ADJUSTMENT
FISCAL BURDEN
FISCAL DECENTRALIZATION
FISCAL DISCIPLINE
FISCAL FEDERALISM
FISCAL TRANSPARENCY
INCOME
INCOME TAX
INDEBTEDNESS
INSTITUTIONAL FRAMEWORK
INTERGOVERNMENTAL TRANSFER
INTERNATIONAL STANDARDS
KEY CHALLENGES
LACK OF TRANSPARENCY
LEGAL REFORM
LEVEL OF GOVERNMENT
LEVY
LIABILITY
LOAN
LOCAL EXPENDITURES
LOCAL GOVERNMENT
LOCAL REVENUE
LOCAL TAXES
MARKET MECHANISMS
MARKET PARTICIPANTS
MATURITY
MINISTRY OF FINANCE
MISREPORTING
MUNICIPAL LEVEL
MUNICIPALITIES
OIL PRICES
PAYROLL COSTS
POLICY REFORM
POLITICAL ECONOMY
POLITICAL ECONOMY FACTORS
PRIVATE LENDERS
PROPERTY TAX
PROPERTY TAX COLLECTION
PROPERTY TAXES
PRUDENTIAL REGULATIONS
PUBLIC
PUBLIC CREDIT
PUBLIC DEBT
PUBLIC FINANCE
PUBLIC FINANCE STATISTICS
PUBLIC FINANCES
PUBLIC REVENUE
PUBLIC SECTOR
PUBLIC SERVICES
RECURRENT EXPENDITURES
RESERVE
RESERVE REQUIREMENTS
RESERVES
REVENUE MOBILIZATION
REVENUE RATIO
REVENUE SOURCE
RISK MANAGEMENT
SHORT-TERM DEBT
SOCIAL SECURITY
STATE EXPENDITURE
STATE EXPENDITURES
STATE GOVERNMENTS
SUBNATIONAL
SUBNATIONAL DEBT
SUBNATIONAL ENTITIES
SUBNATIONAL EXPENDITURE
SUBNATIONAL EXPENDITURES
SUBNATIONAL FISCAL REFORM
SUBNATIONAL GOVERNMENTS
TAX
TAX ADMINISTRATION
TAX AUTHORITY
TAX BASE
TAX COLLECTION
TAX COLLECTIONS
TAX EFFORT
TAX EFFORTS
TAX EVASION
TAX POOL
TAX RATE
TAX REVENUE
TAX REVENUES
TAX RULES
TECHNICAL ASSISTANCE
TOTAL PUBLIC EXPENDITURE
TOTAL PUBLIC EXPENDITURES
TRANSPARENCY
VOTERS
World Bank
Strengthening Subnational Public Finance
geographic_facet Latin America & Caribbean
Mexico
relation Mexico policy note;no. 10
description Mexico's intergovernmental transfer system needs to reduce vertical imbalances and discretionary federal transfers. This note assesses Mexico's pending subnational fiscal reform agenda. Mexico is a federal country divided into 31 sovereign states and one federal district. Each state is composed of municipalities. The fiscal federalism framework in this three-tier government structure consists of the set of laws, rules, and institutions that allocate spending and tax responsibilities and of the transfers and institutional framework for the subnational debt. Mexico has made great progress in strengthening its fiscal federalism framework over the past 10 years, but there is room for improvement. The pending Mexican fiscal federalism reform should focus on decreasing the large vertical gaps that states face, increasing local revenue mobilization, increasing the transparency and effectiveness of local expenditures, and strengthening the subnational borrowing framework to improve states' fiscal discipline. A clearer distinction between federal and state expenditure responsibilities, especially in the basic education sector, could improve service delivery. A more transparent debt reporting is also needed to strengthen subnational fiscal discipline.
format Economic & Sector Work :: Policy Note
author World Bank
author_facet World Bank
author_sort World Bank
title Strengthening Subnational Public Finance
title_short Strengthening Subnational Public Finance
title_full Strengthening Subnational Public Finance
title_fullStr Strengthening Subnational Public Finance
title_full_unstemmed Strengthening Subnational Public Finance
title_sort strengthening subnational public finance
publisher Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2013/04/17570562/strengthening-subnational-public-finance
http://hdl.handle.net/10986/16582
_version_ 1764433757060726784