Is it possible to adjust ‘with a human face’? Differences in fiscal consolidation strategies between Hungary and Iceland

Is it possible to adjust ‘with a human face’? Differences in fiscal consolidation strategies between Hungary and Iceland

AUTHOR(S)
Bruno Martorano

Published: 2014 Innocenti Working Papers
Before the recent economic crisis, Hungary and Iceland were considered to be two excellent models of development. Hungary and Iceland were among the countries affected earliest and most by the recent macroeconomic shock, suffering a similar drop in GDP.While the Hungarian government implemented a flat tax reform in order to stimulate economic activity, the Icelandic government replaced its flat tax system with a progressive one increasing the participation of high income groups in the adjustment process. The aim of this paper is to compare the opposite adjustment paths followed by Hungary and Iceland on selected outcomes.
Are Intergovernmental Transfers in Russia Equalizing?

Are Intergovernmental Transfers in Russia Equalizing?

AUTHOR(S)
Kitty Stewart

Since the break-up of the Soviet Union in 1991, the 88 regions of the Russian Federation have enjoyed increasing autonomy, and by 1994 almost half of all budgetary expenditure in Russia was spent at the regional level. This paper examines the system of transfers which has developed in Russia over the last few years and asks how far it has succeeded in making up for regional revenue disparities. Transfers seem to be directed in broadly the right direction before and after the introduction of the formula mechanism: transfers are higher to regions with greater needs. The bad news, however, is that the impact of the transfers has been minimal. Lower revenue regions may have received more in transfers than higher revenue regions, but not nearly enough to offset the difference in revenue.
Cite this publication | No. of pages: 46 | Thematic area: Countries in Transition | Tags: economic and social development, economic transition, public expenditures, tax revenues | Publisher: UNICEF ICDC, Florence
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