Fiscal federalism and Fiscal Autonomy: Lessons for the UK from other Industrialised Countries



possible area over which the benefits are distributed. The notion is to combine the most
efficient allocation of public goods whilst avoiding taste differences (Atkinson and Stiglitz,
1980).

Table 2: Sub-Central Government Expenditure as a Percentage of General
Government Expenditure

Total Expenditure

Expenditure on Goods and Services

Federal Countries

1985

1990

1995

latest

%

1985

1990

1995

latest

%

Australia

46

50

48

50

9

Australia

"^65^

~64~

~64~

~66~

1

Canada

58

57

58

60

3

Canada

77τ

~79~

^^8Γ

~82~

7

Germany2

40

40

38

35

-13

Germany

^3Γ

^^53^

~47~

-10

Switzerland3

51

51

49

49

-4

Switzerland

IF

~58~

^60^

^^63^

77

USA

38

41

45

48

26

Usa

^^67~

^^64^

~63^

~бГ

-9

Spain

28

33

30

36

29

Spain

^35^

~6Γ

~69~

~70~

26

Unitary Countries

1985

1990

1995

latest

%

1985

1990

1995

latest

%

Denmark

54

54

54

56

4

Denmark

68

69

~69^

~W

2

France

17

18

19

18

6

France

^26^

^^29"

^3T^

IT

28

Italy

■ ■

■ ■

23

25

9

Italy

■ ■

■ ■

~54^

зг

-6

Netherlands

32

28

28

26

-19

Netherlands

τ5T

^48-

^^50^

4

Norway

36

36

37

38

6

Norway

~64~

~63~

~бГ

-

3

Sweden

38

39

33

37

-3

Sweden

~76~

~76~

~70~

7тГ

-6

UK

29

29

26

25

-14

Uk

~41^

~42^

~40~

^39^

-6

Source: IMF Government Financial Statistics, various issues

Notes:

1 The figures for Switzerland relate to 1984 and 1991 rather than 1985 and 1990. The
latest figure for each country the year is the same as that given in Table 1, except in the
cases of Germany and Italy =1998, and Switzerland = 1999.

2 Expenditure on goods and services only excludes interest payments on debt, subsidies
and transfers out of the government sector and capital expenditure, all of which are
predominantly the responsibility of central government.

3 The %column gives the percentage change in expenditure between 1985 and the latest
date for which information is available.

6 This explains why the increase shown in Table 2 is not large.



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