Sub-national Revenue Mobilization in Peru

Gustavo Canavire-Bacarreza, Jorge Martinez-Vazquez () and Cristian Sepulveda ()

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

Abstract: This paper analyses the problem of sub-national revenue mobilization in Peru and proposes several policy reforms to improve collection performance while maintaining a sound revenue structure. We analyze the current revenues of regional and municipal governments and identify the main priorities of reform. Among the most important problems are the acute inequalities and inefficiencies associated with the revenue sharing from extractive industries. These revenues represent a significant share of sub-national budgets and currently they are distributed without consideration of the relative expenditure needs or fiscal capacity of sub-national units. In order to address this problem we propose the incorporation of a measure of fiscal capacity in the formula of the FONCOMUN, the municipal equalization transfer program. Other reforms explored include the reassignment of revenue sources between municipal provincial and district governments and the assignment of new taxes to regional governments.

Keywords: revenue mobilization; fiscal decentralization; Peru (search for similar items in EconPapers)
Pages: 95 pages
Date: 2012-02-02
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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http://icepp.gsu.edu/files/2015/03/ispwp1209.pdf (application/pdf)

Related works:
Working Paper: Sub-national Revenue Mobilization in Peru (2012)
Working Paper: Sub-national Revenue Mobilization in Peru (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ays:ispwps:paper1209

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