Download Fiscal Decentralization Indicators

Fiscal Decentralization Indicators
The data set covers 18 annual, country-level indicators of fiscal decentralization, which
are derived from the IMF-GFS.1 These indicators are based on central consolidated
figures and the aggregated sub-national series (state-provincial and local).
Despite its limitations,2 the GFS series offers the most comprehensive source of
information on fiscal decentralization across countries. Treated with appropriate caution,
these indicators can provide indicative insights on fiscal decentralization across time and
among countries.
List of Indicators
Aggregate Expenditures Measures
1
2
3
Sub-National Share of Expenditures (% Total)
Sub-National Share of Expenditures (% Total, Net Defense & Interest)
Sub-National Expenditures (% GDP)
Sectoral Expenditures Measures
4
5
6
7
Education Share of Sub-National Spending (% Sub-National)
Sub-National Education Spending (% Total Education)
Health Share of Sub-National Spending (% Sub-National)
Sub-National Health Spending (% Total Health)
Revenue Measures
8
9
10
11
12
13
14
15
16
Sub-National Grants Share (% Total Sub-National Revenues)
Sub-National Tax Revenue Share (% Total Sub-National Revenues)
Sub-National Nontax Revenue Share (% Total Sub-National Revenues)
Vertical Imbalance
Sub-National Own-Source Revenues (% GDP)
Sub-National Own-Source Revenues (% Total Own-Source Revenues)
Sub-National Tax Revenues (% Total Tax Revenues)
Sub-National Property Tax (% GDP)
Total Property Tax (% GDP)
Per Capita Measures
17
18
1
2
Per Capita Sub-National Expenditures (USD)
Per Capita Sub-National Revenues (USD)
Population size used to calculate per capita measures was obtained from the WDI database.
See note on “Fiscal Decentralization Indicators: Strengths and Weaknesses”
Definitions and Formulas
Aggregate Expenditures Measures
1
Sub-National Share of Expenditures (% Total)
It is the percentage of total expenditures accounted for by sub-national governments,
measured as the sum of local and provincial total expenditures (C.IISN), excluding
current (C.3.2SN) and capital (C.7.1.1SN) transfers to other levels of government,
divided by the sum of local, provincial and national expenditures, excluding
intergovernmental transfers.
Formula:
C.IISN - C.3.2SN - C.7.1.1SN
[C.IIC - C.3.2C – C.7.1.1C ] + [C.IISN - C.3.2SN - C.7.1.1SN ]
2
Sub-National Share of Expenditures (% Total, Net Defense & Interest)
It is the percentage of total expenditures accounted for by sub-national governments,
excluding defense expenditures and interest payments, since these are rarely
decentralized. It is calculated as the sum of local and provincial total expenditure
(C.IISN), excluding current (C.3.2SN) and capital (C.7.1.1SN) transfers to other levels of
government, and then divided by the sum of local, provincial and national
expenditure, excluding intergovernmental transfers, defense expenditures (B.2 C) and
interest payments (C.2 C).
Formula:
C.IISN - C.3.2SN - C.7.1.1SN
[C.IIC - C.3.2C - C.7.1.1C ] + [C.IISN - C.3.2SN - C.7.1.1SN ] - [B.2 C + C.2C ]
3
Sub-National Expenditures (% GDP)
It is the sum of local and provincial total expenditures (C.IISN), excluding current
(C.3.2SN) and capital (C.7.1.1SN) transfers to other levels of government, as a
percentage of GDP.
Formula:
C.IISN - C.3.2SN - C.7.1.1SN
GDP
Sectoral Expenditures Measures
4
Education Share of Sub-National Spending (% Sub-National)
It is the percentage of sub-national expenditures on education, measured as the sum
of local and provincial expenditures on education (B.4SN), divided by the sum of local
and provincial total expenditures (C.IISN).
Formula:
B.4SN
C.IISN
5
Sub-National Education Spending (% Total Education)
It is the percentage of total education expenditures accounted for by sub-national
governments, measured as the sum of local and provincial expenditures on
education (B.4SN), divided by total expenditures on education (B.4).
Formula:
B.4SN
B.4C + B.4SN
6
Health Share of Sub-National Spending (% Sub-National)
It is the percentage of sub-national expenditures on health, measured as the sum of
local and provincial expenditures on health (B.5SN), divided by the sum of local and
provincial total expenditures (C.IISN).
Formula:
B.5SN
C.IISN
7
Sub-National Health Spending (% Total Health)
It is the percentage of total health expenditures accounted for by sub-national
governments, measured as the sum of local and provincial expenditures on health
(B.5SN), divided by the total expenditures on health (B.5).
Formula:
B.5SN
B.5C + B.5SN
Revenue Measures
8
Sub-National Grants Share (% Total Sub-National Revenues)
It is the share of grants received by local and provincial governments from the
national government (A.18SN), relative to total subnational revenues (A.ISN), which
include current revenues (tax and nontax), capital revenues and grants.
Formula:
A.18SN
A.ISN
9
Sub-National Tax Revenue Share (% Total Sub-National Revenues)
It is the share of local and provincial tax revenues (A.IVSN), relative to total
subnational revenues (A.ISN), which include current revenues (tax and nontax),
capital revenues and grants.
Formula:
A.IVSN
A.ISN
10 Sub-National Nontax Revenue Share (% Total Sub-National Revenues)
It is the share of local and provincial nontax revenues (A.VSN), relative to total
subnational revenues (A.ISN), which consist of current revenues (tax and nontax),
capital revenues, and grants. Nontax revenues include enterprise income, fees and
charges, among others.
Formula:
A.VSN
A.ISN
11 Vertical Imbalance
It is the share of grants received by local and provincial governments from the
national government (A.18SN), relative to total sub-national government expenditures.
It is calculated as the total amount of grants paid to sub-national governments,
divided by the sum of local and provincial total expenditure (C.IISN), excluding current
(C.3.2SN) and capital (C.7.1.1SN) transfers to other levels of government.
Formula:
A.18SN
C.IISN - C.3.2SN - C.7.1.1SN
12 Sub-National Own-Source Revenues (% GDP)
It is the sum of local and provincial current and capital revenues (A.IISN), as a
percentage of GDP.
Formula:
A.IISN
GDP
13 Sub-National Own-Source Revenues (% Total Own-Source Revenues)
It is the percentage of current and capital revenues collected by sub-national
governments, measured as the sum of local and provincial own-source revenues
(A.IISN), divided by the sum of local, provincial and national own-source revenues.
Formula:
A.IISN
A.IISN + A.IIC
14 Sub-National Tax Revenues (% Total Tax Revenues)
It is the percentage of tax revenues collected by sub-national governments,
measured as the sum of local and provincial tax revenues (A.IVSN), divided by the
sum of local, provincial and national tax revenues.
Formula:
A.IVSN
A.IVSN + A.IVC
15 Sub-National Property Tax (% GDP)
It is the sum of local and provincial property tax revenues (A.4SN), as a percentage of
GDP.
Formula:
A.4SN
GDP
16 Total Property Tax (% GDP)
It is the sum of local, provincial and national property tax revenues (A.4SN), as a
percentage of GDP.
Formula:
A.4SN + A.4C
GDP
Per Capita Measures
17 Per Capita Sub-National Expenditures (USD)
It is the sum of local and provincial total expenditure (C.IISN), excluding current
(C.3.2SN) and capital (C.7.1.1SN) transfers to other levels of national government,
adjusted by the exchange rate in US dollars, divided by the sum of local and/or
provincial population. Data are in U.S. dollars.
Formula:
C.IISN - C.3.2SN - C.7.1.1SN
wdi_pop
18 Per Capita Sub-National Revenues (USD)
It is the sum of local and provincial total revenues (A.ISN), adjusted by the exchange
rate in US dollars (ifs_fxrate), and divided by the sum of local and/or provincial
population. Data are in U.S. dollars.
Formula:
A.ISN / ifs_fxrate
wdi_pop
Legend
The letter and number codes are consistent with those of GFS:
GDP
Gross Domestic Product
A.I
A.II
Total Revenue = A.II + A.VII
Total Own-Source Revenue = A.IV + A.V + A.VI
A.IV Tax Revenue (1-7)
A.4 Property tax
A.V Nontax Revenue (8-12)3
A.VI Capital Revenue
Grants
A.18 Grants from Other Levels of National Government
A.VII
C.II
C.III
C.IV
B.2
B.4
B.5
Total Expenditure (III+IV)
Current Expenditure (1-3)
C.2 Interest Payments
C.3.2 Current Transfers to Other Levels of National Government
Capital Expenditure
C.7.1.1 Capital Transfers to Other Levels of National Government
Defense Expenditure
Education Expenditure
Health Expenditure
Central Government
Sub-National Government = Local + Provincial
C
SN
World Bank WDI/IMF IFS Variables
POP
Population (source: WDI)
wdi_gdp GDP (constant LCU)
wdi_pop Population, total
ifs_fxrate Loc curr/us$, mkt rate, period avg
3
Includes enterprise income, fees and charges, among others.