000 01153pab a2200181 454500
008 180718b2000 xxu||||| |||| 00| 0 eng d
100 _aRajaraman, Indira
245 _aImpact of grants on tax effort of local government
260 _c2000
300 _ap.2943-948
362 _a12 Aug
520 _aThis paper examines the impact of state-local grants on tax effort of rural local governments (panchayats) for Kerala state using data for 1993-94. After controlling for tax capacity we find a negative impact on own tax revenue of lump sum `untied' grants that are predictable and unvarying. The reduction in own tax revenue is the result of a selective slackening of tax effort. The post-grant pattern of tax incidence will therefore be less transparent than the nominal pattern, less preserving of voter preferences, and possibly driven by corruption towards greater regressivity. The data contradicts the flypaper effect and also theories of fiscal effects of ethnic fragmentation. - Reproduced
650 _aTaxation
650 _aLocal government
700 _aVasishtha, Garima
773 _aEconomic and Political Weekly
909 _a45884
999 _c45884
_d45884