State government expenditures in a federal system: cost and revenue equalization effects in Australia

1995 ◽  
Vol 27 (2) ◽  
pp. 139-146 ◽  
Author(s):  
Ross Williams
2020 ◽  
Author(s):  
Ebenezer Toyin Megbowon ◽  
Samuel Aderoju ◽  
Gbenga Sanusi

Abstract One of the sustained political and economic strategies that have been adopted by various countries over three decades to achieve the desired level of development is fiscal federalism. Through this economic development strategy, various levels of government within an economy have been involved in the pursuit of reducing poverty over the decades. The purpose of this study is to examine the relationship between government expenditure on poverty reduction with respect to federal and state government expenditures respectively. The study employed the auto-regressive distributed lag (ARDL) estimation technique to establish long-run relationship, and to examine the magnitude of the effect of federal and state government expenditures in both the short-run and long-run periods using time-series data for the period 1981 to 2018. Results obtained indicate that only state government expenditure has positive effect on poverty reduction in Nigeria. The findings of this study therefore support the need for greater decentralization and increase in fiscal expenditure responsibilities and strengthening revenue capability in favor of state governments, giving that achieving desired poverty reduction could be achieved through increased state government spending.JEL Classification: E62, H50, I30


1936 ◽  
Vol 30 (1) ◽  
pp. 24-50 ◽  
Author(s):  
W. Brooke Graves

In any consideration of the future of the states, it is desirable at the outset to recall the circumstances of their development and of their entry into the Union. When the present Constitution was framed and adopted, the states were more than a century and a half old. At that time, and for many years thereafter, it was the states to which the people gave their primary allegiance. Under the Articles of Confederation, the strength of the states was so great that the central government was unable to function; when the Constitution was framed, the people were still greatly concerned about “states' rights.” This priority of the states in the federal system continued through the nineteenth century, down to the period of the Civil War; in the closing decades of that century, state government sank into the depths in an orgy of graft and corruption and inefficiency, which resulted in a wave of state constitutional restrictions, particularly upon legislative powers.At this time, when the prestige and efficiency of the state governments were at their lowest ebb, there began to appear ringing indictments of the whole state system. Most conspicuous of these were the well known writings of Professors John W. Burgess, of Columbia University, and Simon N. Patten, of the University of Pennsylvania.


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