What is the meaning of fiscal decentralization?
Fiscal decentralization is essentially the transfer of expenditure responsibilities and revenue assignments to lower levels of government.
What is the current fiscal policy of Pakistan?
Total outlay of the Federal Budget 2021-22 is over PKR 8 trillion. Total expenditure for the next year stands at PKR 8.487 trillion; almost 19 percent higher than last year’s PKR 7.136 trillion. The growth benchmark for the next fiscal year is 4.8 percent; Current Account Deficit (CAD) is to be limited to 0.7 percent.
How fiscal policy affect the economy in Pakistan?
In Pakistan, government expenditure constitutes a major portion of total expenditure. This has a direct impact on inflation because it may result in demand pull inflation, and indirectly affects the fiscal deficit. Consequently, inflation increases as result of fiscal policy.
What are the benefits of fiscal decentralization?
The advantages to fiscal decentralisation are commonly thought to be three-fold: preference-matching, efficiency through competition, and increased accountability.
What are the main features of fiscal decentralization?
Fiscal decentralization can take many forms, including a) self-financing or cost recovery through user charges, b) co-financing or co-production arrangements through which the users participate in providing services and infrastructure through monetary or labor contributions; c) expansion of local revenues through …
How is fiscal decentralization measured?
The degree of decentralization is studied using four measures: revenue, tax effort, expenditure, and compensation of employees. Tax effort, sometimes referred to as fiscal burden, is defined as the sum of tax revenue and compulsory social security contributions (GFSM 2001, paragraph 5.11).
What is FBR and its functions?
FBR performs role of collection of taxation in the country from all individuals and businesses. FBR also collects intelligence on tax evasion and administers tax laws for the Government of Pakistan and acts as the central revenue collection agency of Pakistan.
What are the key performance of fiscal policy of Pakistan for the fiscal year 2021?
Provisional GDP growth rate for FY 2021 is estimated to be 3.94 percent against the targeted growth of 2.1 percent. The Current account balance during Jul-Apr, FY 2020-21 had been in surplus of $0.8 bn (0.3 percent of GDP) against a deficit of $4.7 bn (–2.1 percent of GDP) in the corresponding year.
What is meant by fiscal federalism?
fiscal federalism, financial relations between units of governments in a federal government system. Fiscal federalism is part of broader public finance discipline. The term was introduced by the German-born American economist Richard Musgrave in 1959.
What is the backbone of fiscal management in the municipality?
The Municipal Planning and Development Office (MPDO) serves as the backbone of a Local Government Unit.